Back to top

Image: Bigstock

Is Central Valley Community Bancorp (CVCY) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Central Valley Community Bancorp (CVCY - Free Report) . CVCY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.96, which compares to its industry's average of 13.54. Over the past year, CVCY's Forward P/E has been as high as 15.34 and as low as 8.11, with a median of 12.89.

We also note that CVCY holds a PEG ratio of 1.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CVCY's industry currently sports an average PEG of 1.68. Within the past year, CVCY's PEG has been as high as 1.71 and as low as 1.48, with a median of 1.57.

Another notable valuation metric for CVCY is its P/B ratio of 0.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.57. Within the past 52 weeks, CVCY's P/B has been as high as 1.29 and as low as 0.64, with a median of 1.19.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CVCY has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.12.

Finally, our model also underscores that CVCY has a P/CF ratio of 6.50. 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. CVCY's P/CF compares to its industry's average P/CF of 11.93. Over the past 52 weeks, CVCY's P/CF has been as high as 10.67 and as low as 5, with a median of 9.72.

These are just a handful of the figures considered in Central Valley Community 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 CVCY 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:

Central Valley Community Bancorp (CVCY) - free report >>

Published in