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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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.29, while its industry has an average P/E of 14.07. Over the last 12 months, OPBK's Forward P/E has been as high as 11.26 and as low as 8.54, with a median of 10.13.
Investors will also notice that OPBK has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OPBK's PEG compares to its industry's average PEG of 1.60. Within the past year, OPBK's PEG has been as high as 1.13 and as low as 0.85, with a median of 0.98.
Another valuation metric that we should highlight is OPBK's P/B ratio of 1.14. 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 1.57. Over the past 12 months, OPBK's P/B has been as high as 1.30 and as low as 0.99, with a median of 1.13.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPBK has a P/S ratio of 2.24. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that OPBK has a P/CF ratio of 7.77. 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 12.44. Over the past 52 weeks, OPBK's P/CF has been as high as 9.23 and as low as 7.12, with a median of 7.93.
These are only a few of the key metrics included in OP Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OPBK looks like an impressive value stock at the moment.
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Is OP Bancorp (OPBK) Stock Undervalued Right Now?
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.29, while its industry has an average P/E of 14.07. Over the last 12 months, OPBK's Forward P/E has been as high as 11.26 and as low as 8.54, with a median of 10.13.
Investors will also notice that OPBK has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OPBK's PEG compares to its industry's average PEG of 1.60. Within the past year, OPBK's PEG has been as high as 1.13 and as low as 0.85, with a median of 0.98.
Another valuation metric that we should highlight is OPBK's P/B ratio of 1.14. 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 1.57. Over the past 12 months, OPBK's P/B has been as high as 1.30 and as low as 0.99, with a median of 1.13.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPBK has a P/S ratio of 2.24. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that OPBK has a P/CF ratio of 7.77. 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 12.44. Over the past 52 weeks, OPBK's P/CF has been as high as 9.23 and as low as 7.12, with a median of 7.93.
These are only a few of the key metrics included in OP Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OPBK looks like an impressive value stock at the moment.