Are Investors Undervaluing CB Financial Services (CBFV) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is CB Financial Services (CBFV). CBFV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.79 right now. For comparison, its industry sports an average P/E of 9.01. Over the last 12 months, CBFV's Forward P/E has been as high as 17.94 and as low as 8.77, with a median of 14.96.
Another notable valuation metric for CBFV is its P/B ratio of 0.91. 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. This stock's P/B looks attractive against its industry's average P/B of 1.40. Over the past 12 months, CBFV's P/B has been as high as 1.06 and as low as 0.89, with a median of 0.97.
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. CBFV has a P/S ratio of 1.85. This compares to its industry's average P/S of 2.69.
Finally, we should also recognize that CBFV has a P/CF ratio of 7.29. 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 13.28. Over the past year, CBFV's P/CF has been as high as 12.08 and as low as 7.24, with a median of 10.79.
These are only a few of the key metrics included in CB Financial Services'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, CBFV looks like an impressive value stock at the moment.
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