Are These Finance Stocks 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...
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is BCB Bancorp NJ (BCBP). BCBP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.28, which compares to its industry's average of 12.80. Over the last 12 months, BCBP's Forward P/E has been as high as 13.50 and as low as 7.96, with a median of 8.88.
Another notable valuation metric for BCBP is its P/B ratio of 1.10. 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. BCBP's current P/B looks attractive when compared to its industry's average P/B of 1.71. Over the past 12 months, BCBP's P/B has been as high as 1.21 and as low as 0.83, with a median of 1.06.
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 2.17. This compares to its industry's average P/S of 2.98.
Finally, our model also underscores that BCBP has a P/CF ratio of 8.08. 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. BCBP's P/CF compares to its industry's average P/CF of 17.37. Within the past 12 months, BCBP's P/CF has been as high as 12.74 and as low as 7.16, with a median of 8.75.
Another great Banks - Northeast stock you could consider is Capital Bancorp (CBNK), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Capital Bancorp holds a P/B ratio of 1.82 and its industry's price-to-book ratio is 1.71. CBNK's P/B has been as high as 2.04, as low as 1.17, with a median of 1.75 over the past 12 months.
These are just a handful of the figures considered in BCB Bancorp NJ and Capital 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 BCBP and CBNK is an impressive value stock right now.
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BCB Bancorp, Inc. NJ (BCBP): Free Stock Analysis Report
Capital Bancorp, Inc. (CBNK): Free Stock Analysis Report
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