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Should Value Investors Buy OP Bancorp (OPBK) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.72. This compares to its industry's average Forward P/E of 16.02. Over the past 52 weeks, OPBK's Forward P/E has been as high as 11.80 and as low as 5.88, with a median of 7.23.

Investors should also recognize that OPBK has a P/B ratio of 1.27. 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. OPBK's current P/B looks attractive when compared to its industry's average P/B of 2.20. OPBK's P/B has been as high as 1.28 and as low as 0.69, with a median of 0.84, over the past year.

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. OPBK has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.23.

Finally, investors should note that OPBK has a P/CF ratio of 9.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OPBK's P/CF compares to its industry's average P/CF of 18.32. Over the past 52 weeks, OPBK's P/CF has been as high as 9.84 and as low as 4.52, with a median of 5.66.

These are just a handful of the figures considered in OP Bancorp'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 OPBK is an impressive value stock right now.


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