Should Value Investors Buy These Finance Stocks?
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, 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Camden National (CAC). CAC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.84, which compares to its industry's average of 13.10. Over the past 52 weeks, CAC's Forward P/E has been as high as 12.87 and as low as 9.80, with a median of 11.25.
Investors should also recognize that CAC has a P/B ratio of 1.34. Investors use the P/B ratio to look at a stock's market value versus 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 1.77. Over the past year, CAC's P/B has been as high as 1.39 and as low as 1.01, with a median of 1.30.
Finally, investors will want to recognize that CAC has a P/CF ratio of 9.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.86. CAC's P/CF has been as high as 10.71 and as low as 7.79, with a median of 8.85, all within the past year.
Midland States Bancorp (MSBI) may be another strong Banks - Northeast stock to add to your shortlist. MSBI is a # 2 (Buy) stock with a Value grade of A.
Midland States Bancorp sports a P/B ratio of 0.85 as well; this compares to its industry's price-to-book ratio of 1.77. In the past 52 weeks, MSBI's P/B has been as high as 1.06, as low as 0.65, with a median of 0.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Camden National and Midland States Bancorp are likely undervalued currently. And when considering the strength of its earnings outlook, CAC and MSBI sticks out as one of the market's strongest value stocks.
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Camden National Corporation (CAC) : Free Stock Analysis Report
Midland States Bancorp, Inc. (MSBI) : Free Stock Analysis Report
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