Is Preferred Bank (PFBC) Stock Undervalued Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Preferred Bank (PFBC) is a stock many investors are watching right now. PFBC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.41 right now. For comparison, its industry sports an average P/E of 10.10. Over the past year, PFBC's Forward P/E has been as high as 8.56 and as low as 4.84, with a median of 6.90.
Finally, investors should note that PFBC has a P/CF ratio of 7.25. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.91. PFBC's P/CF has been as high as 7.25 and as low as 4.45, with a median of 5.92, all within the past year.
These are just a handful of the figures considered in Preferred Bank'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 PFBC is an impressive value stock right now.
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Preferred Bank (PFBC) : Free Stock Analysis Report