Are Investors Undervaluing Equity Bancshares (EQBK) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Equity Bancshares (EQBK) is a stock many investors are watching right now. EQBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that EQBK has a P/B ratio of 0.95. The P/B ratio pits a stock's market value against 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 1.08. Over the past year, EQBK's P/B has been as high as 1.53 and as low as 0.76, with a median of 1.14.
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. EQBK has a P/S ratio of 1.57. This compares to its industry's average P/S of 1.8.
Finally, our model also underscores that EQBK has a P/CF ratio of 6.16. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EQBK's P/CF compares to its industry's average P/CF of 10.17. Over the past 52 weeks, EQBK's P/CF has been as high as 8.36 and as low as 4.84, with a median of 6.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Equity Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, EQBK sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Equity Bancshares, Inc. (EQBK) : Free Stock Analysis Report
