Is Capital Bancorp (CBNK) Stock Undervalued Right Now?
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.
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.
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 company value investors might notice is Capital Bancorp (CBNK). CBNK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.88, while its industry has an average P/E of 9.35. CBNK's Forward P/E has been as high as 13.32 and as low as 7.71, with a median of 10.09, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CBNK has a P/S ratio of 1.76. This compares to its industry's average P/S of 2.71.
Finally, our model also underscores that CBNK has a P/CF ratio of 7.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.72. Over the past 52 weeks, CBNK's P/CF has been as high as 10.03 and as low as 6.95, with a median of 8.44.
Another great Banks - Northeast stock you could consider is Midland States Bancorp (MSBI), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Midland States Bancorp holds a P/B ratio of 0.88 and its industry's price-to-book ratio is 1.31. MSBI's P/B has been as high as 1.01, as low as 0.78, with a median of 0.88 over the past 12 months.
These are just a handful of the figures considered in Capital Bancorp and Midland States 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 CBNK and MSBI is an impressive value stock right now.
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Capital Bancorp, Inc. (CBNK) : Free Stock Analysis Report
Midland States Bancorp, Inc. (MSBI) : Free Stock Analysis Report
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