Is Northeast Community Bancorp (NECB) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Northeast Community Bancorp (NECB). NECB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.31, while its industry has an average P/E of 8.55. NECB's Forward P/E has been as high as 8.37 and as low as 5.61, with a median of 6.74, all within the past year.
Another notable valuation metric for NECB is its P/B ratio of 0.80. The P/B ratio pits a stock's market value against 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 1.13. NECB's P/B has been as high as 0.99 and as low as 0.74, with a median of 0.84, over the past year.
Finally, investors will want to recognize that NECB has a P/CF ratio of 4.38. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.29. Over the past year, NECB's P/CF has been as high as 6.36 and as low as 4.11, with a median of 5.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Northeast Community Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NECB feels like a great value stock at the moment.
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Northeast Community Bancorp Inc. (NECB) : Free Stock Analysis Report