Is Republic Bancorp (RBCAA) a Great Value Stock 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.
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.
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 stock to keep an eye on is Republic Bancorp (RBCAA). RBCAA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.07, which compares to its industry's average of 9.44. Over the past year, RBCAA's Forward P/E has been as high as 12.87 and as low as 8.95, with a median of 11.14.
Another valuation metric that we should highlight is RBCAA's P/B ratio of 0.97. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.93. Within the past 52 weeks, RBCAA's P/B has been as high as 1.25 and as low as 0.91, with a median of 1.07.
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. RBCAA has a P/S ratio of 2.52. This compares to its industry's average P/S of 2.76.
Finally, we should also recognize that RBCAA has a P/CF ratio of 8.03. 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. RBCAA's current P/CF looks attractive when compared to its industry's average P/CF of 12.25. RBCAA's P/CF has been as high as 12.95 and as low as 7.51, with a median of 9.16, all within the past year.
Regions Financial (RF) may be another strong Banks - Southeast stock to add to your shortlist. RF is a # 2 (Buy) stock with a Value grade of A.
Shares of Regions Financial are currently trading at a forward earnings multiple of 8.55 and a PEG ratio of 0.84 compared to its industry's P/E and PEG ratios of 9.44 and 1.03, respectively.
RF's price-to-earnings ratio has been as high as 12.16 and as low as 7.77, with a median of 9.09, while its PEG ratio has been as high as 0.93 and as low as 0.27, with a median of 0.60, all within the past year.
Additionally, Regions Financial has a P/B ratio of 1.49 while its industry's price-to-book ratio sits at 1.93. For RF, this valuation metric has been as high as 1.62, as low as 1.13, with a median of 1.34 over the past year.
These are just a handful of the figures considered in Republic Bancorp and Regions 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 RBCAA and RF is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Republic Bancorp, Inc. (RBCAA) : Free Stock Analysis Report
Regions Financial Corporation (RF) : Free Stock Analysis Report
