Are Investors Undervaluing Bank7 (BSVN) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Bank7 (BSVN) is a stock many investors are watching right now. BSVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.19, while its industry has an average P/E of 10.71. Over the past year, BSVN's Forward P/E has been as high as 9.29 and as low as 5.41, with a median of 6.60.

Investors should also recognize that BSVN has a P/B ratio of 1.48. 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. BSVN's current P/B looks attractive when compared to its industry's average P/B of 1.89. Over the past 12 months, BSVN's P/B has been as high as 1.91 and as low as 1.12, with a median of 1.43.

Finally, we should also recognize that BSVN has a P/CF ratio of 6.73. 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. BSVN's current P/CF looks attractive when compared to its industry's average P/CF of 11.41. Within the past 12 months, BSVN's P/CF has been as high as 8.78 and as low as 5.09, with a median of 6.54.

Synovus Financial (SNV) may be another strong Banks - Southeast stock to add to your shortlist. SNV is a # 2 (Buy) stock with a Value grade of A.

Shares of Synovus Financial currently holds a Forward P/E ratio of 8.85, and its PEG ratio is 2.38. In comparison, its industry sports average P/E and PEG ratios of 10.71 and 1.73.

SNV's Forward P/E has been as high as 10.52 and as low as 5.22, with a median of 7.32. During the same time period, its PEG ratio has been as high as 6.24, as low as 1.73, with a median of 2.32.

Synovus Financial sports a P/B ratio of 1.36 as well; this compares to its industry's price-to-book ratio of 1.89. In the past 52 weeks, SNV's P/B has been as high as 1.64, as low as 0.88, with a median of 1.08.

These are only a few of the key metrics included in Bank7 and Synovus Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BSVN and SNV look like an impressive value stock at the moment.

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