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Should Value Investors Buy Trustmark (TRMK) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Trustmark (TRMK - Free Report) . TRMK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that TRMK has a P/B ratio of 0.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.65. Within the past 52 weeks, TRMK's P/B has been as high as 1.10 and as low as 0.75, with a median of 0.92.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TRMK has a P/S ratio of 1.5. This compares to its industry's average P/S of 1.78.

Finally, investors will want to recognize that TRMK has a P/CF ratio of 7.81. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.30. TRMK's P/CF has been as high as 12.69 and as low as 7.54, with a median of 9.58, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Trustmark is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TRMK feels like a great value stock at the moment.


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