Is First Savings Financial Group (FSFG) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
First Savings Financial Group (FSFG) is a stock many investors are watching right now. FSFG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 6.65. This compares to its industry's average Forward P/E of 8.79. Over the last 12 months, FSFG's Forward P/E has been as high as 9.16 and as low as 4.32, with a median of 6.50.
Another notable valuation metric for FSFG is its P/B ratio of 0.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FSFG's current P/B looks attractive when compared to its industry's average P/B of 0.80. Over the past year, FSFG's P/B has been as high as 1.05 and as low as 0.49, with a median of 0.65.
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. FSFG has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.63.
These are just a handful of the figures considered in First Savings Financial Group'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 FSFG is an impressive value stock right now.
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First Savings Financial Group, Inc. (FSFG) : Free Stock Analysis Report
