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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Eagle Bancorp Montana (EBMT). EBMT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.79, which compares to its industry's average of 10.88. Over the past year, EBMT's Forward P/E has been as high as 13.92 and as low as 8.85, with a median of 10.35.
Another valuation metric that we should highlight is EBMT's P/B ratio of 0.77. The P/B ratio pits a stock's market value against 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 2.10. Over the past 12 months, EBMT's P/B has been as high as 0.83 and as low as 0.60, with a median of 0.74.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EBMT has a P/S ratio of 1.11. This compares to its industry's average P/S of 2.
Finally, investors will want to recognize that EBMT has a P/CF ratio of 6.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EBMT's P/CF compares to its industry's average P/CF of 15.44. Over the past 52 weeks, EBMT's P/CF has been as high as 7.56 and as low as 5.60, with a median of 6.55.
These are only a few of the key metrics included in Eagle Bancorp Montana'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, EBMT 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
Eagle Bancorp Montana, Inc. (EBMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
