Should Value Investors Buy Riverview Bancorp (RVSB) 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 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 stock to keep an eye on is Riverview Bancorp (RVSB). RVSB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.70, while its industry has an average P/E of 9.59. Over the last 12 months, RVSB's Forward P/E has been as high as 10.15 and as low as 7.30, with a median of 8.47.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RVSB has a P/S ratio of 2.51. This compares to its industry's average P/S of 2.58.
Finally, our model also underscores that RVSB has a P/CF ratio of 7.25. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.13. Over the past 52 weeks, RVSB's P/CF has been as high as 7.61 and as low as 5.33, with a median of 6.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Riverview Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, RVSB sticks out at as one of the market's strongest value stocks.
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Riverview Bancorp Inc (RVSB) : Free Stock Analysis Report
