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Should Value Investors Buy Old Second Bancorp (OSBC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.45, while its industry has an average P/E of 10.39. OSBC's Forward P/E has been as high as 10.39 and as low as 7.18, with a median of 8.81, all within the past year.
Investors should also recognize that OSBC has a P/B ratio of 1.09. 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 1.97. Within the past 52 weeks, OSBC's P/B has been as high as 1.30 and as low as 0.94, with a median of 1.15.
Finally, our model also underscores that OSBC has a P/CF ratio of 8.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OSBC's P/CF compares to its industry's average P/CF of 14.43. Over the past 52 weeks, OSBC's P/CF has been as high as 9.42 and as low as 6.47, with a median of 8.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Old Second Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSBC feels like a great value stock at the moment.
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Should Value Investors Buy Old Second Bancorp (OSBC) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.45, while its industry has an average P/E of 10.39. OSBC's Forward P/E has been as high as 10.39 and as low as 7.18, with a median of 8.81, all within the past year.
Investors should also recognize that OSBC has a P/B ratio of 1.09. 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 1.97. Within the past 52 weeks, OSBC's P/B has been as high as 1.30 and as low as 0.94, with a median of 1.15.
Finally, our model also underscores that OSBC has a P/CF ratio of 8.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OSBC's P/CF compares to its industry's average P/CF of 14.43. Over the past 52 weeks, OSBC's P/CF has been as high as 9.42 and as low as 6.47, with a median of 8.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Old Second Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSBC feels like a great value stock at the moment.