Back to top

Image: Bigstock

Is First Bancorp (FBP) a Great Value Stock Right Now?

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is First Bancorp (FBP - Free Report) . FBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that FBP holds a PEG ratio of 0.63. 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. FBP's PEG compares to its industry's average PEG of 1.34. FBP's PEG has been as high as 1.84 and as low as 0.33, with a median of 0.99, all within the past year.

Another notable valuation metric for FBP is its P/B ratio of 1.06. The P/B ratio is used to compare a stock's market value with 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 1.57. Over the past 12 months, FBP's P/B has been as high as 1.25 and as low as 0.91, with a median of 1.06.

Finally, our model also underscores that FBP has a P/CF ratio of 9.36. 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 12.82. Over the past year, FBP's P/CF has been as high as 15.11 and as low as 8.57, with a median of 10.18.

These are just a handful of the figures considered in First 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 FBP 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:


First BanCorp. (FBP) - free report >>

Published in