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Are Investors Undervaluing Riverview Bancorp (RVSB) Right Now?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Riverview Bancorp (RVSB - Free Report) . RVSB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that RVSB has a P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus 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 0.95. Over the past year, RVSB's P/B has been as high as 0.90 and as low as 0.50, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RVSB has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Riverview Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RVSB feels like a great value stock at the moment.
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Are Investors Undervaluing Riverview Bancorp (RVSB) Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Riverview Bancorp (RVSB - Free Report) . RVSB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that RVSB has a P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus 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 0.95. Over the past year, RVSB's P/B has been as high as 0.90 and as low as 0.50, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RVSB has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Riverview Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RVSB feels like a great value stock at the moment.