Is Alerus Financial (ALRS) a Great Value Stock Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Alerus Financial (ALRS) is a stock many investors are watching right now. ALRS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.39, while its industry has an average P/E of 10.64. Over the past 52 weeks, ALRS's Forward P/E has been as high as 16.70 and as low as 10.26, with a median of 13.74.
We should also highlight that ALRS has a P/B ratio of 1.27. 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 3.47. Within the past 52 weeks, ALRS's P/B has been as high as 1.80 and as low as 1.21, with a median of 1.44.
Finally, our model also underscores that ALRS has a P/CF ratio of 7.60. 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. ALRS's P/CF compares to its industry's average P/CF of 14.57. Over the past year, ALRS's P/CF has been as high as 10.37 and as low as 7, with a median of 7.84.
If you're looking for another solid Financial - Miscellaneous Services value stock, take a look at Intercorp Financial Services (IFS). IFS is a # 2 (Buy) stock with a Value score of A.
Shares of Intercorp Financial Services currently holds a Forward P/E ratio of 6.21, and its PEG ratio is 0.42. In comparison, its industry sports average P/E and PEG ratios of 10.64 and 0.66.
IFS's Forward P/E has been as high as 9.34 and as low as 5.06, with a median of 7.18. During the same time period, its PEG ratio has been as high as 0.63, as low as 0.42, with a median of 0.55.
Additionally, Intercorp Financial Services has a P/B ratio of 1.15 while its industry's price-to-book ratio sits at 3.47. For IFS, this valuation metric has been as high as 1.71, as low as 0.84, with a median of 1.23 over the past year.
These are just a handful of the figures considered in Alerus Financial and Intercorp 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 ALRS and IFS is an impressive value stock right now.
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