Should Value Investors Buy Medallion Financial (MFIN) 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.
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.
One company value investors might notice is Medallion Financial (MFIN). MFIN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.53, which compares to its industry's average of 7.41. Over the past 52 weeks, MFIN's Forward P/E has been as high as 7.31 and as low as 3.41, with a median of 5.31.
Investors should also recognize that MFIN has a P/B ratio of 0.47. 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 0.87. Within the past 52 weeks, MFIN's P/B has been as high as 0.59 and as low as 0.36, with a median of 0.47.
These are only a few of the key metrics included in Medallion Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MFIN looks like an impressive value stock at the moment.
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Medallion Financial Corp. (MFIN) : Free Stock Analysis Report
