Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 Bank OZK (OZK). OZK is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.08. This compares to its industry's average Forward P/E of 10.17. Over the past year, OZK's Forward P/E has been as high as 8.78 and as low as 6.06, with a median of 7.29.
Investors should also recognize that OZK has a P/B ratio of 1.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OZK's current P/B looks attractive when compared to its industry's average P/B of 1.08. Over the past 12 months, OZK's P/B has been as high as 1.12 and as low as 0.78, with a median of 0.96.
Finally, investors should note that OZK has a P/CF ratio of 7.15. 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. OZK's P/CF compares to its industry's average P/CF of 17.15. Over the past 52 weeks, OZK's P/CF has been as high as 7.39 and as low as 5.25, with a median of 6.33.
Value investors will likely look at more than just these metrics, but the above data helps show that Bank OZK is likely undervalued currently. And when considering the strength of its earnings outlook, OZK sticks out as one of the market's strongest value stocks.
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Bank OZK (OZK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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