Should Value Investors Buy Community West Bancshares (CWBC) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Community West Bancshares (CWBC). CWBC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.53, which compares to its industry's average of 9.86. CWBC's Forward P/E has been as high as 10.55 and as low as 8.70, with a median of 9.16, all within the past year.
We should also highlight that CWBC has a P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with 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 1.52. Within the past 52 weeks, CWBC's P/B has been as high as 1.35 and as low as 1.10, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CWBC has a P/S ratio of 2.5. This compares to its industry's average P/S of 2.75.
These are just a handful of the figures considered in Community West Bancshares'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 CWBC is an impressive value stock right now.
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Community West Bancshares (CWBC) : Free Stock Analysis Report
