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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 to watch right now is BCB Bancorp (BCBP). BCBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.11. This compares to its industry's average Forward P/E of 10.55. Over the last 12 months, BCBP's Forward P/E has been as high as 15.07 and as low as 9.45, with a median of 12.45.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. BCBP has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.83.
Finally, investors will want to recognize that BCBP has a P/CF ratio of 9.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.35. Within the past 12 months, BCBP's P/CF has been as high as 12.74 and as low as 7.15, with a median of 9.41.
These are just a handful of the figures considered in BCB 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 is an impressive value stock right now.
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BCB Bancorp, Inc. NJ (BCBP) : Free Stock Analysis Report
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