Are Investors Undervaluing Byline Bancorp (BY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Byline Bancorp (BY) is a stock many investors are watching right now. BY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.65 right now. For comparison, its industry sports an average P/E of 8.52. BY's Forward P/E has been as high as 10.69 and as low as 6.72, with a median of 8.11, all within the past year.
Another notable valuation metric for BY is its P/B ratio of 0.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.19. Within the past 52 weeks, BY's P/B has been as high as 1.26 and as low as 0.80, with a median of 0.97.
Finally, our model also underscores that BY has a P/CF ratio of 8.52. 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. BY's P/CF compares to its industry's average P/CF of 10.31. Over the past year, BY's P/CF has been as high as 9.71 and as low as 6.28, with a median of 7.82.
Investors could also keep in mind Fulton Financial (FULT), an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Fulton Financial holds a P/B ratio of 0.97 and its industry's price-to-book ratio is 1.19. FULT's P/B has been as high as 1.38, as low as 0.66, with a median of 0.92 over the past 12 months.
These are just a handful of the figures considered in Byline Bancorp and Fulton Financial'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 BY and FULT is an impressive value stock right now.
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Byline Bancorp, Inc. (BY) : Free Stock Analysis Report
Fulton Financial Corporation (FULT) : Free Stock Analysis Report
