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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Bank7 (BSVN). BSVN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.99. This compares to its industry's average Forward P/E of 11.03. Over the past year, BSVN's Forward P/E has been as high as 9.92 and as low as 7.50, with a median of 8.50.
We should also highlight that BSVN has a P/B ratio of 1.70. 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 1.80. Over the past year, BSVN's P/B has been as high as 2 and as low as 1.19, with a median of 1.48.
Finally, investors should note that BSVN has a P/CF ratio of 9. 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. BSVN's current P/CF looks attractive when compared to its industry's average P/CF of 16.29. Over the past 52 weeks, BSVN's P/CF has been as high as 10.61 and as low as 6.27, with a median of 8.09.
Investors could also keep in mind BancorpSouth Bank (CADE), an Banks - Southeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
BancorpSouth Bank sports a P/B ratio of 1.13 as well; this compares to its industry's price-to-book ratio of 1.80. In the past 52 weeks, CADE's P/B has been as high as 1.35, as low as 0.94, with a median of 1.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Bank7 and BancorpSouth Bank are likely undervalued currently. And when considering the strength of its earnings outlook, BSVN and CADE sticks out as one of the market's strongest value stocks.
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Bank7 Corp. (BSVN) : Free Stock Analysis Report
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