Is BCB Bancorp (BCBP) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is BCB Bancorp (BCBP). BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.21 right now. For comparison, its industry sports an average P/E of 10.76. Over the last 12 months, BCBP's Forward P/E has been as high as 11.67 and as low as 8.23, with a median of 10.23.
Investors will also notice that BCBP has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BCBP's PEG compares to its industry's average PEG of 1.21. Over the last 12 months, BCBP's PEG has been as high as 1.17 and as low as 0.82, with a median of 1.02.
Another valuation metric that we should highlight is BCBP's P/B ratio of 1.08. 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. This stock's P/B looks solid versus its industry's average P/B of 1.44. BCBP's P/B has been as high as 1.24 and as low as 0.92, with a median of 1.08, over the past year.
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 1.68. This compares to its industry's average P/S of 2.86.
Finally, our model also underscores that BCBP has a P/CF ratio of 10.74. 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. BCBP's P/CF compares to its industry's average P/CF of 12.47. Over the past 52 weeks, BCBP's P/CF has been as high as 18.21 and as low as 9.66, with a median of 12.08.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, BCBP sticks out at as one of the market's strongest value stocks.
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BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report
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