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Is FS Bancorp (FSBW) a Great Value Stock Right Now?

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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.

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 FS Bancorp (FSBW - Free Report) . FSBW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.34, while its industry has an average P/E of 10.40. Over the past 52 weeks, 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. 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 solid versus its industry's average P/B of 1.41. FSBW's P/B has been as high as 1.31 and as low as 0.93, with a median of 1.07, over the past year.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSBW has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.48.

Finally, our model also underscores that FSBW has a P/CF ratio of 7.14. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.75. Over the past 52 weeks, FSBW's P/CF has been as high as 7.90 and as low as 6.22, with a median of 6.97.

These are just a handful of the figures considered in FS Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FSBW is an impressive value stock right now.

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