While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 to watch right now is Northeast Community Bancorp (NECB). NECB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.68, which compares to its industry's average of 9.71. Over the past 52 weeks, NECB's Forward P/E has been as high as 10.12 and as low as 6.28, with a median of 7.47.
Investors should also recognize that NECB has a P/B ratio of 0.89. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NECB's current P/B looks attractive when compared to its industry's average P/B of 1.14. Within the past 52 weeks, NECB's P/B has been as high as 1.41 and as low as 0.84, with a median of 1.02.
Finally, our model also underscores that NECB has a P/CF ratio of 6.39. 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 12.89. NECB's P/CF has been as high as 8.35 and as low as 5.95, with a median of 6.71, all within the past year.
These are just a handful of the figures considered in Northeast Community 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 NECB is an impressive value stock right now.
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Northeast Community Bancorp Inc. (NECB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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