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Is Bank OZK (OZK) Stock Undervalued 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Bank OZK (OZK - Free Report) is a stock many investors are watching right now. OZK is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.42, while its industry has an average P/E of 9.52. Over the past 52 weeks, OZK's Forward P/E has been as high as 8.78 and as low as 6.06, with a median of 7.29.

We should also highlight that OZK has a P/B ratio of 0.99. 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. OZK's current P/B looks attractive when compared to its industry's average P/B of 1.02. OZK's P/B has been as high as 1.12 and as low as 0.78, with a median of 0.96, over the past year.

Finally, investors will want to recognize that OZK has a P/CF ratio of 6.70. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.81. Over the past 52 weeks, OZK's P/CF has been as high as 7.39 and as low as 5.25, with a median of 6.33.

SB Financial Group (SBFG - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. SBFG is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

SB Financial Group sports a P/B ratio of 1.01 as well; this compares to its industry's price-to-book ratio of 1.02. In the past 52 weeks, SBFG's P/B has been as high as 1.26, as low as 0.80, with a median of 0.99.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bank OZK and SB Financial Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OZK and SBFG feels like a great value stock at the moment.


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