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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 10.61. Over the past year, FSBW's Forward P/E has been as high as 10.94 and as low as 8.27, with a median of 9.30.
Investors should also recognize that FSBW has a P/B ratio of 1.07. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.31. Over the past 12 months, FSBW's P/B has been as high as 1.31 and as low as 0.93, with a median of 1.07.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSBW has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.31.
Finally, we should also recognize that FSBW has a P/CF ratio of 7.14. 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. FSBW's current P/CF looks attractive when compared to its industry's average P/CF of 10.71. Within the past 12 months, FSBW's P/CF has been as high as 7.90 and as low as 6.22, with a median of 6.97.
Value investors will likely look at more than just these metrics, but the above data helps show that FS Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, FSBW sticks out as one of the market's strongest value stocks.
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Is FS Bancorp (FSBW) Stock Undervalued Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 10.61. Over the past year, FSBW's Forward P/E has been as high as 10.94 and as low as 8.27, with a median of 9.30.
Investors should also recognize that FSBW has a P/B ratio of 1.07. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.31. Over the past 12 months, FSBW's P/B has been as high as 1.31 and as low as 0.93, with a median of 1.07.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSBW has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.31.
Finally, we should also recognize that FSBW has a P/CF ratio of 7.14. 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. FSBW's current P/CF looks attractive when compared to its industry's average P/CF of 10.71. Within the past 12 months, FSBW's P/CF has been as high as 7.90 and as low as 6.22, with a median of 6.97.
Value investors will likely look at more than just these metrics, but the above data helps show that FS Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, FSBW sticks out as one of the market's strongest value stocks.