Should Value Investors Buy Univest Corporation of Pennsylvania (UVSP) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Univest Corporation of Pennsylvania (UVSP). UVSP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that UVSP has a P/B ratio of 0.63. 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 1.10. Over the past 12 months, UVSP's P/B has been as high as 1.13 and as low as 0.60, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. UVSP has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.67.
Finally, we should also recognize that UVSP has a P/CF ratio of 5.78. 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. UVSP's current P/CF looks attractive when compared to its industry's average P/CF of 9.25. Within the past 12 months, UVSP's P/CF has been as high as 11.13 and as low as 5.71, with a median of 8.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Univest Corporation of Pennsylvania is likely undervalued currently. And when considering the strength of its earnings outlook, UVSP sticks out at as one of the market's strongest value stocks.
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Univest Corporation of Pennsylvania (UVSP) : Free Stock Analysis Report
