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Are Investors Undervaluing Shore Bancshares (SHBI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Shore Bancshares (SHBI - Free Report) . SHBI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.31. This compares to its industry's average Forward P/E of 9.95. Over the past year, SHBI's Forward P/E has been as high as 12.57 and as low as 7.29, with a median of 9.70.
Investors should also recognize that SHBI has a P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.06. Over the past 12 months, SHBI's P/B has been as high as 1.09 and as low as 0.71, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SHBI has a P/S ratio of 1.59. This compares to its industry's average P/S of 1.83.
Finally, investors should note that SHBI has a P/CF ratio of 9.89. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.80. Within the past 12 months, SHBI's P/CF has been as high as 12.48 and as low as 7.80, with a median of 10.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Shore Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, SHBI sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Shore Bancshares (SHBI) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Shore Bancshares (SHBI - Free Report) . SHBI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.31. This compares to its industry's average Forward P/E of 9.95. Over the past year, SHBI's Forward P/E has been as high as 12.57 and as low as 7.29, with a median of 9.70.
Investors should also recognize that SHBI has a P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.06. Over the past 12 months, SHBI's P/B has been as high as 1.09 and as low as 0.71, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SHBI has a P/S ratio of 1.59. This compares to its industry's average P/S of 1.83.
Finally, investors should note that SHBI has a P/CF ratio of 9.89. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.80. Within the past 12 months, SHBI's P/CF has been as high as 12.48 and as low as 7.80, with a median of 10.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Shore Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, SHBI sticks out as one of the market's strongest value stocks.