Is BCB Bancorp NJ (BCBP) a Great Value Stock 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 the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 has a Forward P/E ratio of 8.21. This compares to its industry's average Forward P/E of 10.28. Over the last 12 months, BCBP's Forward P/E has been as high as 8.23 and as low as 4.19, with a median of 5.74.
We should also highlight that BCBP has a P/B ratio of 0.77. The P/B ratio is used to compare a stock's market value with 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 1.46. Over the past year, BCBP's P/B has been as high as 1.18 and as low as 0.57, with a median of 0.71.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCBP has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.92.
Finally, investors will want to recognize that BCBP has a P/CF ratio of 6.23. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.36. Over the past year, BCBP's P/CF has been as high as 6.95 and as low as 3.93, with a median of 5.02.
Another great Banks - Northeast stock you could consider is First United (FUNC), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, First United holds a P/B ratio of 1.01 and its industry's price-to-book ratio is 1.46. FUNC's P/B has been as high as 1.01, as low as 0.55, with a median of 0.72 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp NJ and First United are likely undervalued currently. And when considering the strength of its earnings outlook, BCBP and FUNC sticks out as one of the market's strongest value stocks.
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BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report
First United Corporation (FUNC) : Free Stock Analysis Report
