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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 UMB Financial (UMBF). UMBF 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 11.14. This compares to its industry's average Forward P/E of 11.25. Over the last 12 months, UMBF's Forward P/E has been as high as 13.63 and as low as 8.69, with a median of 11.03.
We should also highlight that UMBF has a P/B ratio of 1.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. UMBF's current P/B looks attractive when compared to its industry's average P/B of 2.43. Over the past year, UMBF's P/B has been as high as 1.76 and as low as 0.99, with a median of 1.41.
Finally, investors should note that UMBF has a P/CF ratio of 15.76. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.27. Within the past 12 months, UMBF's P/CF has been as high as 16.15 and as low as 8.94, with a median of 12.36.
These figures are just a handful of the metrics value investors tend to look at, but they help show that UMB Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UMBF feels like a great value stock at the moment.
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UMB Financial Corporation (UMBF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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