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Should Value Investors Buy Great Southern Bancorp (GSBC) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Great Southern Bancorp (GSBC - Free Report) . GSBC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is GSBC's P/B ratio of 1.05. Investors use the P/B ratio to look at a stock's market value versus 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 1.48. Within the past 52 weeks, GSBC's P/B has been as high as 1.28 and as low as 0.96, with a median of 1.13.

Finally, investors will want to recognize that GSBC has a P/CF ratio of 10.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GSBC's current P/CF looks attractive when compared to its industry's average P/CF of 18.49. GSBC's P/CF has been as high as 15.89 and as low as 9.73, with a median of 12.29, all within the past year.

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


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