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Should Value Investors Buy BCB Bancorp (BCBP) Stock?
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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.
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.
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 BCB Bancorp (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.35, while its industry has an average P/E of 10.22. Over the past year, BCBP's Forward P/E has been as high as 12.48 and as low as 8.23, with a median of 10.34.
Investors will also notice that BCBP has a PEG ratio of 0.94. 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. BCBP's industry currently sports an average PEG of 1.15. Over the past 52 weeks, BCBP's PEG has been as high as 1.25 and as low as 0.82, with a median of 1.03.
Investors should also recognize that BCBP has a P/B ratio of 1.01. 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 1.34. Over the past 12 months, BCBP's P/B has been as high as 1.30 and as low as 0.92, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCBP has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.65.
Finally, investors should note that BCBP has a P/CF ratio of 9.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.77. Within the past 12 months, BCBP's P/CF has been as high as 19.04 and as low as 9.62, with a median of 12.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BCB Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCBP feels like a great value stock at the moment.
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Should Value Investors Buy BCB Bancorp (BCBP) Stock?
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.
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.
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 BCB Bancorp (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.35, while its industry has an average P/E of 10.22. Over the past year, BCBP's Forward P/E has been as high as 12.48 and as low as 8.23, with a median of 10.34.
Investors will also notice that BCBP has a PEG ratio of 0.94. 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. BCBP's industry currently sports an average PEG of 1.15. Over the past 52 weeks, BCBP's PEG has been as high as 1.25 and as low as 0.82, with a median of 1.03.
Investors should also recognize that BCBP has a P/B ratio of 1.01. 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 1.34. Over the past 12 months, BCBP's P/B has been as high as 1.30 and as low as 0.92, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCBP has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.65.
Finally, investors should note that BCBP has a P/CF ratio of 9.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.77. Within the past 12 months, BCBP's P/CF has been as high as 19.04 and as low as 9.62, with a median of 12.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BCB Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCBP feels like a great value stock at the moment.