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Should Value Investors Buy Columbia Banking System (COLB) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Columbia Banking System (COLB - Free Report) . COLB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.47. This compares to its industry's average Forward P/E of 10.41. Over the past 52 weeks, COLB's Forward P/E has been as high as 11.81 and as low as 7.59, with a median of 9.48.
Another notable valuation metric for COLB is its P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. COLB's current P/B looks attractive when compared to its industry's average P/B of 1.30. Within the past 52 weeks, COLB's P/B has been as high as 1.27 and as low as 0.83, with a median of 1.03.
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. COLB has a P/S ratio of 1.74. This compares to its industry's average P/S of 2.12.
Finally, our model also underscores that COLB has a P/CF ratio of 8.61. 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. COLB's current P/CF looks attractive when compared to its industry's average P/CF of 10.82. COLB's P/CF has been as high as 11.97 and as low as 7.68, with a median of 9.42, all within the past year.
These are only a few of the key metrics included in Columbia Banking System's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, COLB looks like an impressive value stock at the moment.
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Should Value Investors Buy Columbia Banking System (COLB) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Columbia Banking System (COLB - Free Report) . COLB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.47. This compares to its industry's average Forward P/E of 10.41. Over the past 52 weeks, COLB's Forward P/E has been as high as 11.81 and as low as 7.59, with a median of 9.48.
Another notable valuation metric for COLB is its P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. COLB's current P/B looks attractive when compared to its industry's average P/B of 1.30. Within the past 52 weeks, COLB's P/B has been as high as 1.27 and as low as 0.83, with a median of 1.03.
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. COLB has a P/S ratio of 1.74. This compares to its industry's average P/S of 2.12.
Finally, our model also underscores that COLB has a P/CF ratio of 8.61. 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. COLB's current P/CF looks attractive when compared to its industry's average P/CF of 10.82. COLB's P/CF has been as high as 11.97 and as low as 7.68, with a median of 9.42, all within the past year.
These are only a few of the key metrics included in Columbia Banking System's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, COLB looks like an impressive value stock at the moment.