Are Investors Undervaluing OP Bancorp (OPBK) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
OP Bancorp (OPBK) is a stock many investors are watching right now. OPBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.53. This compares to its industry's average Forward P/E of 12.34. OPBK's Forward P/E has been as high as 7.57 and as low as 5.02, with a median of 6.34, all within the past year.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OPBK's current P/B looks attractive when compared to its industry's average P/B of 1.79. Within the past 52 weeks, OPBK's P/B has been as high as 0.92 and as low as 0.62, with a median of 0.77.
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. OPBK has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.89.
Finally, our model also underscores that OPBK has a P/CF ratio of 5.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OPBK's P/CF compares to its industry's average P/CF of 16.21. Over the past year, OPBK's P/CF has been as high as 6.14 and as low as 3.27, with a median of 4.23.
Value investors will likely look at more than just these metrics, but the above data helps show that OP Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, OPBK sticks out at as one of the market's strongest value stocks.
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OP Bancorp (OPBK) : Free Stock Analysis Report
