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Are Investors Undervaluing BCB Bancorp (BCBP) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is BCB Bancorp (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.18, while its industry has an average P/E of 10.73. Over the past year, BCBP's Forward P/E has been as high as 14.56 and as low as 8.23, with a median of 12.17.
We also note that BCBP holds a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BCBP's industry has an average PEG of 1.10 right now. Within the past year, BCBP's PEG has been as high as 1.46 and as low as 0.82, with a median of 1.22.
Another valuation metric that we should highlight is BCBP's P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to 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 1.54. Over the past 12 months, BCBP's P/B has been as high as 1.47 and as low as 0.92, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCBP has a P/S ratio of 1.64. This compares to its industry's average P/S of 2.82.
Finally, investors should note that BCBP has a P/CF ratio of 14.26. 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. BCBP's P/CF compares to its industry's average P/CF of 15.06. Over the past year, BCBP's P/CF has been as high as 19.76 and as low as 12.66, with a median of 17.69.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, BCBP sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing BCB Bancorp (BCBP) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is BCB Bancorp (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.18, while its industry has an average P/E of 10.73. Over the past year, BCBP's Forward P/E has been as high as 14.56 and as low as 8.23, with a median of 12.17.
We also note that BCBP holds a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BCBP's industry has an average PEG of 1.10 right now. Within the past year, BCBP's PEG has been as high as 1.46 and as low as 0.82, with a median of 1.22.
Another valuation metric that we should highlight is BCBP's P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to 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 1.54. Over the past 12 months, BCBP's P/B has been as high as 1.47 and as low as 0.92, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCBP has a P/S ratio of 1.64. This compares to its industry's average P/S of 2.82.
Finally, investors should note that BCBP has a P/CF ratio of 14.26. 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. BCBP's P/CF compares to its industry's average P/CF of 15.06. Over the past year, BCBP's P/CF has been as high as 19.76 and as low as 12.66, with a median of 17.69.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, BCBP sticks out at as one of the market's strongest value stocks.