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Are These Finance Stocks a Great Value Stocks 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 First Interstate BancSystem (FIBK). FIBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that FIBK has a P/B ratio of 1.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FIBK's current P/B looks attractive when compared to its industry's average P/B of 2.12. Over the past year, FIBK's P/B has been as high as 1.64 and as low as 1.15, with a median of 1.37.

Finally, our model also underscores that FIBK has a P/CF ratio of 8.71. 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. FIBK's current P/CF looks attractive when compared to its industry's average P/CF of 15.59. FIBK's P/CF has been as high as 14.19 and as low as 8.34, with a median of 10.12, all within the past year.

Another great Banks - Midwest stock you could consider is First Western Financial (MYFW), which is a # 1 (Strong Buy) stock with a Value Score of A.

Furthermore, First Western Financial holds a P/B ratio of 1.47 and its industry's price-to-book ratio is 2.12. MYFW's P/B has been as high as 1.53, as low as 0.93, with a median of 1.31 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that First Interstate BancSystem and First Western Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FIBK and MYFW feels like a great value stock at the moment.


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First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report
 
First Western Financial, Inc. (MYFW) : Free Stock Analysis Report
 
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