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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.
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.
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 company value investors might notice is Southern First (SFST). SFST is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.83. This compares to its industry's average Forward P/E of 13.01. SFST's Forward P/E has been as high as 12.86 and as low as 5.94, with a median of 11.47, all within the past year.
We should also highlight that SFST has a P/B ratio of 1.08. 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 1.65. SFST's P/B has been as high as 1.70 and as low as 0.80, with a median of 1.52, over the past year.
Finally, our model also underscores that SFST has a P/CF ratio of 7.44. 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. SFST's current P/CF looks attractive when compared to its industry's average P/CF of 13.42. Over the past 52 weeks, SFST's P/CF has been as high as 12.02 and as low as 5.60, with a median of 10.95.
These are just a handful of the figures considered in Southern First'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 SFST is an impressive value stock right now.
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Southern First Bancshares, Inc. (SFST) : Free Stock Analysis Report
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