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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.
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.
One company value investors might notice is BCB Bancorp (BCBP). BCBP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.36, which compares to its industry's average of 13.28. Over the past 52 weeks, BCBP's Forward P/E has been as high as 15.07 and as low as 8.72, with a median of 12.37.
Another valuation metric that we should highlight is BCBP's P/B ratio of 1.11. 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. BCBP's current P/B looks attractive when compared to its industry's average P/B of 1.69. BCBP's P/B has been as high as 1.21 and as low as 0.62, with a median of 0.83, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCBP has a P/S ratio of 1.99. This compares to its industry's average P/S of 2.85.
Finally, investors will want to recognize that BCBP has a P/CF ratio of 9.69. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.95. Over the past 52 weeks, BCBP's P/CF has been as high as 12.74 and as low as 7.15, with a median of 9.28.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, BCBP sticks out at as one of the market's strongest value stocks.
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BCB Bancorp, Inc. NJ (BCBP) : Free Stock Analysis Report
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