Are Investors Undervaluing Trustmark (TRMK) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Trustmark (TRMK). TRMK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is TRMK's P/B ratio of 1. 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. TRMK's current P/B looks attractive when compared to its industry's average P/B of 1.79. Over the past 12 months, TRMK's P/B has been as high as 1.24 and as low as 0.75, with a median of 0.92.
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. TRMK has a P/S ratio of 1.51. This compares to its industry's average P/S of 1.83.
Finally, investors will want to recognize that TRMK has a P/CF ratio of 8.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.19. Within the past 12 months, TRMK's P/CF has been as high as 15.07 and as low as 7.77, with a median of 9.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Trustmark is likely undervalued currently. And when considering the strength of its earnings outlook, TRMK sticks out at as one of the market's strongest value stocks.
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Trustmark Corporation (TRMK) : Free Stock Analysis Report
