Back to top

Image: Bigstock

Should Value Investors Buy CB Financial Services (CBFV) Stock?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is CB Financial Services (CBFV - Free Report) . CBFV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that CBFV holds a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CBFV's industry has an average PEG of 1.15 right now. Over the past 52 weeks, CBFV's PEG has been as high as 1.62 and as low as 1.03, with a median of 1.14.

Another notable valuation metric for CBFV is its P/B ratio of 0.96. The P/B ratio pits a stock's market value against 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 1.34. Over the past 12 months, CBFV's P/B has been as high as 1.31 and as low as 0.87, with a median of 0.97.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBFV has a P/S ratio of 2.41. This compares to its industry's average P/S of 2.65.

Finally, investors should note that CBFV has a P/CF ratio of 9.70. 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. CBFV's current P/CF looks attractive when compared to its industry's average P/CF of 11.77. CBFV's P/CF has been as high as 18.92 and as low as 9.29, with a median of 13.26, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that CB Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, CBFV sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CB Financial Services, Inc. (CBFV) - free report >>

Published in