Should Value Investors Buy OP Bancorp (OPBK) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 OP Bancorp (OPBK). OPBK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 11.10. Over the past 52 weeks, OPBK's Forward P/E has been as high as 7.19 and as low as 4.98, with a median of 6.
Another notable valuation metric for OPBK is its P/B ratio of 0.78. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.65. OPBK's P/B has been as high as 1.13 and as low as 0.62, with a median of 0.96, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OPBK has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.76.
Finally, investors should note that OPBK has a P/CF ratio of 4.24. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.72. Over the past 52 weeks, OPBK's P/CF has been as high as 5.75 and as low as 3.27, with a median of 4.80.
These are only a few of the key metrics included in OP Bancorp'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, OPBK looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
OP Bancorp (OPBK) : Free Stock Analysis Report
