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Is RBB (RBB) Stock Undervalued Right Now?

Zacks Equity Research
·3 min read

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 RBB (RBB). RBB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.11 right now. For comparison, its industry sports an average P/E of 12.45. Over the past 52 weeks, RBB's Forward P/E has been as high as 11.14 and as low as 5.86, with a median of 8.28.

Investors should also recognize that RBB has a P/B ratio of 0.73. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. Over the past year, RBB's P/B has been as high as 1.07 and as low as 0.52, with a median of 0.64.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RBB has a P/S ratio of 2.04. This compares to its industry's average P/S of 2.68.

Finally, investors will want to recognize that RBB has a P/CF ratio of 8.12. 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. RBB's current P/CF looks attractive when compared to its industry's average P/CF of 13.83. RBB's P/CF has been as high as 10.45 and as low as 5.48, with a median of 6.92, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that RBB is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RBB feels like a great value stock at the moment.


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