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Should Value Investors Buy OP Bancorp (OPBK) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.85 right now. For comparison, its industry sports an average P/E of 13.75. Over the past year, OPBK's Forward P/E has been as high as 12.35 and as low as 6.22, with a median of 7.73.
Another valuation metric that we should highlight is OPBK's 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. This stock's P/B looks attractive against its industry's average P/B of 2.00. Over the past year, OPBK's P/B has been as high as 1.34 and as low as 0.75, with a median of 0.95.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 1.31. This compares to its industry's average P/S of 2.3.
Finally, we should also recognize that OPBK has a P/CF ratio of 7.86. 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 19.66. OPBK's P/CF has been as high as 10.31 and as low as 5.98, with a median of 7.41, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OP Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPBK feels like a great value stock at the moment.
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Should Value Investors Buy OP Bancorp (OPBK) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.85 right now. For comparison, its industry sports an average P/E of 13.75. Over the past year, OPBK's Forward P/E has been as high as 12.35 and as low as 6.22, with a median of 7.73.
Another valuation metric that we should highlight is OPBK's 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. This stock's P/B looks attractive against its industry's average P/B of 2.00. Over the past year, OPBK's P/B has been as high as 1.34 and as low as 0.75, with a median of 0.95.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 1.31. This compares to its industry's average P/S of 2.3.
Finally, we should also recognize that OPBK has a P/CF ratio of 7.86. 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 19.66. OPBK's P/CF has been as high as 10.31 and as low as 5.98, with a median of 7.41, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OP Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPBK feels like a great value stock at the moment.