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Are Investors Undervaluing SB Financial Group (SBFG) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is SB Financial Group (SBFG - Free Report) . SBFG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.54, which compares to its industry's average of 9.65. Over the past 52 weeks, SBFG's Forward P/E has been as high as 13.56 and as low as 8.14, with a median of 10.46.

Another valuation metric that we should highlight is SBFG's P/B ratio of 0.9. The P/B ratio is used to compare a stock's market value with 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 1.01. Within the past 52 weeks, SBFG's P/B has been as high as 1.26 and as low as 0.73, with a median of 0.99.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBFG has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.78.

Finally, investors will want to recognize that SBFG has a P/CF ratio of 7.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.97. Over the past year, SBFG's P/CF has been as high as 10.29 and as low as 5.64, with a median of 8.25.

Value investors will likely look at more than just these metrics, but the above data helps show that SB Financial Group is likely undervalued currently. And when considering the strength of its earnings outlook, SBFG sticks out as one of the market's strongest value stocks.


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