Is Medallion Financial (MFIN) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Medallion Financial (MFIN). MFIN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.82, which compares to its industry's average of 9.23. Over the last 12 months, MFIN's Forward P/E has been as high as 6.16 and as low as 3.34, with a median of 4.90.
Investors should also recognize that MFIN has a P/B ratio of 0.56. 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. This stock's P/B looks attractive against its industry's average P/B of 0.87. Over the past 12 months, MFIN's P/B has been as high as 0.68 and as low as 0.40, with a median of 0.57.
Finally, investors will want to recognize that MFIN has a P/CF ratio of 2.69. 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. MFIN's P/CF compares to its industry's average P/CF of 9.17. MFIN's P/CF has been as high as 12.65 and as low as 1.90, with a median of 2.87, all within the past year.
These are just a handful of the figures considered in Medallion Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MFIN is an impressive value stock right now.
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