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Is Alerus Financial (ALRS) Stock Undervalued Right Now?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Alerus Financial (ALRS). ALRS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.17 right now. For comparison, its industry sports an average P/E of 11.29. Over the last 12 months, ALRS's Forward P/E has been as high as 16.70 and as low as 9.60, with a median of 13.61.

Investors should also recognize that ALRS has a P/B ratio of 1.36. The P/B is a method of comparing a stock's market value to 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 3.99. Over the past year, ALRS's P/B has been as high as 1.80 and as low as 1.28, with a median of 1.42.

Oportun Financial (OPRT) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. OPRT is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Oportun Financial has a P/B ratio of 0.56 while its industry's price-to-book ratio sits at 3.99. For OPRT, this valuation metric has been as high as 1.54, as low as 0.54, with a median of 1.18 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Alerus Financial and Oportun Financial are likely undervalued currently. And when considering the strength of its earnings outlook, ALRS and OPRT sticks out as one of the market's strongest value stocks.


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Alerus Financial (ALRS) : Free Stock Analysis Report
 
Oportun Financial Corporation (OPRT) : Free Stock Analysis Report
 
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