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Should Value Investors Buy Eagle Bancorp Montana (EBMT) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Eagle Bancorp Montana (EBMT - Free Report) . EBMT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.71 right now. For comparison, its industry sports an average P/E of 10.31. Over the past year, EBMT's Forward P/E has been as high as 13.92 and as low as 8.79, with a median of 10.35.
Another notable valuation metric for EBMT is its P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Within the past 52 weeks, EBMT's P/B has been as high as 0.83 and as low as 0.60, with a median of 0.72.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBMT has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.93.
Finally, our model also underscores that EBMT has a P/CF ratio of 6.27. 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. EBMT's P/CF compares to its industry's average P/CF of 14.33. EBMT's P/CF has been as high as 7.56 and as low as 5.60, with a median of 6.55, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Eagle Bancorp Montana is likely undervalued currently. And when considering the strength of its earnings outlook, EBMT sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Eagle Bancorp Montana (EBMT) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Eagle Bancorp Montana (EBMT - Free Report) . EBMT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.71 right now. For comparison, its industry sports an average P/E of 10.31. Over the past year, EBMT's Forward P/E has been as high as 13.92 and as low as 8.79, with a median of 10.35.
Another notable valuation metric for EBMT is its P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Within the past 52 weeks, EBMT's P/B has been as high as 0.83 and as low as 0.60, with a median of 0.72.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBMT has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.93.
Finally, our model also underscores that EBMT has a P/CF ratio of 6.27. 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. EBMT's P/CF compares to its industry's average P/CF of 14.33. EBMT's P/CF has been as high as 7.56 and as low as 5.60, with a median of 6.55, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Eagle Bancorp Montana is likely undervalued currently. And when considering the strength of its earnings outlook, EBMT sticks out at as one of the market's strongest value stocks.