Back to top

Image: Bigstock

Is CB Financial Services (CBFV) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 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 to watch right now is CB Financial Services (CBFV - Free Report) . CBFV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

CBFV is also sporting a PEG ratio of 1.14. 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. CBFV's PEG compares to its industry's average PEG of 1.21. Within the past year, CBFV's PEG has been as high as 1.62 and as low as 1.03, with a median of 1.13.

Another notable valuation metric for CBFV is its P/B ratio of 0.96. 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. CBFV's current P/B looks attractive when compared to its industry's average P/B of 1.44. Over the past 12 months, CBFV's P/B has been as high as 1.30 and as low as 0.87, with a median of 0.95.

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. CBFV has a P/S ratio of 2.41. This compares to its industry's average P/S of 2.86.

Finally, our model also underscores that CBFV has a P/CF ratio of 9.92. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.47. Over the past year, CBFV's P/CF has been as high as 18.77 and as low as 9.27, with a median of 12.93.

These are just a handful of the figures considered in CB Financial Services'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 CBFV is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

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

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

Published in