Back to top

Image: Bigstock

Should Value Investors Buy Bank7 (BSVN) Stock?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Bank7 (BSVN - Free Report) . BSVN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.97 right now. For comparison, its industry sports an average P/E of 9.67. Over the last 12 months, BSVN's Forward P/E has been as high as 9.29 and as low as 5.41, with a median of 6.66.

Another notable valuation metric for BSVN is its P/B ratio of 1.49. 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 solid versus its industry's average P/B of 1.61. Within the past 52 weeks, BSVN's P/B has been as high as 1.58 and as low as 1.12, with a median of 1.41.

Finally, our model also underscores that BSVN has a P/CF ratio of 8.10. 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. BSVN's P/CF compares to its industry's average P/CF of 11.88. Within the past 12 months, BSVN's P/CF has been as high as 8.82 and as low as 5.09, with a median of 6.58.

These are just a handful of the figures considered in Bank7's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BSVN is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bank7 Corp. (BSVN) - free report >>

Published in