Are Investors Undervaluing First Savings Financial Group (FSFG) Right Now?
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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.
First Savings Financial Group (FSFG) is a stock many investors are watching right now. FSFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.51, while its industry has an average P/E of 12.29. Over the past 52 weeks, FSFG's Forward P/E has been as high as 10.55 and as low as 6.03, with a median of 8.26.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSFG has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.61.
These are just a handful of the figures considered in First Savings Financial Group'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 FSFG is an impressive value stock right now.
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First Savings Financial Group, Inc. (FSFG) : Free Stock Analysis Report