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Are Investors Undervaluing Great Southern Bancorp (GSBC) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Great Southern Bancorp (GSBC - Free Report) is a stock many investors are watching right now. GSBC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that GSBC has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.74. Over the past 12 months, GSBC's P/B has been as high as 1.28 and as low as 0.96, with a median of 1.12.

Finally, investors will want to recognize that GSBC has a P/CF ratio of 11.98. 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. GSBC's P/CF compares to its industry's average P/CF of 21.81. GSBC's P/CF has been as high as 15.89 and as low as 9.73, with a median of 12.04, 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 Great Southern Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GSBC feels like a great value stock at the moment.


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