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Is First Bancorp (FBP) a Great Value Stock Right Now?

Zacks Equity Research

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.

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 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 company to watch right now is First Bancorp (FBP). FBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.58. This compares to its industry's average Forward P/E of 12. Over the past 52 weeks, FBP's Forward P/E has been as high as 15.23 and as low as 11.26, with a median of 12.60.

Investors will also notice that FBP has a PEG ratio of 0.61. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FBP's PEG compares to its industry's average PEG of 1.32. FBP's PEG has been as high as 1.84 and as low as 0.33, with a median of 0.99, all within the past year.

Investors should also recognize that FBP has a P/B ratio of 1.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FBP's current P/B looks attractive when compared to its industry's average P/B of 1.61. Within the past 52 weeks, FBP's P/B has been as high as 1.25 and as low as 0.91, with a median of 1.06.

Finally, investors should note that FBP has a P/CF ratio of 9.13. 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 13.05. Over the past 52 weeks, FBP's P/CF has been as high as 13.90 and as low as 8.49, with a median of 9.74.

These are only a few of the key metrics included in First Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FBP looks like an impressive value stock at the moment.


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