Are Investors Undervaluing First Interstate BancSystem (FIBK) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is First Interstate BancSystem (FIBK). FIBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that FIBK has a P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FIBK's current P/B looks attractive when compared to its industry's average P/B of 1.92. FIBK's P/B has been as high as 1.56 and as low as 1.08, with a median of 1.33, over the past year.
Finally, our model also underscores that FIBK has a P/CF ratio of 7.73. 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. FIBK's P/CF compares to its industry's average P/CF of 20.04. Within the past 12 months, FIBK's P/CF has been as high as 11.94 and as low as 7.73, with a median of 9.79.
Value investors will likely look at more than just these metrics, but the above data helps show that First Interstate BancSystem is likely undervalued currently. And when considering the strength of its earnings outlook, FIBK sticks out at as one of the market's strongest value stocks.
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First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report
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