Is Trustmark (TRMK) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Trustmark (TRMK) is a stock many investors are watching right now. TRMK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is TRMK's P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.52. TRMK's P/B has been as high as 1.54 and as low as 0.80, with a median of 1.03, over the past year.
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 1.34. This compares to its industry's average P/S of 1.78.
Finally, investors will want to recognize that TRMK has a P/CF ratio of 8.73. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.42. Over the past year, TRMK's P/CF has been as high as 17.49 and as low as 8.65, with a median of 10.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Trustmark is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TRMK feels like a great value stock at the moment.
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Trustmark Corporation (TRMK) : Free Stock Analysis Report
