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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 OP Bancorp (OPBK). OPBK is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.03. This compares to its industry's average Forward P/E of 12.85. Over the past year, OPBK's Forward P/E has been as high as 12.35 and as low as 6.22, with a median of 8.00.
Investors should also recognize that OPBK has a P/B ratio of 0.9. 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 1.91. OPBK's P/B has been as high as 1.34 and as low as 0.75, with a median of 0.95, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 1.16. This compares to its industry's average P/S of 2.18.
Finally, our model also underscores that OPBK has a P/CF ratio of 7.00. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.82. Within the past 12 months, OPBK's P/CF has been as high as 10.31 and as low as 5.98, with a median of 7.35.
These are just a handful of the figures considered in OP Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OPBK is an impressive value stock right now.
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OP Bancorp (OPBK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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