Is RBB Bancorp (RBB) a Great Value Stock Right Now?

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

RBB Bancorp (RBB) is a stock many investors are watching right now. RBB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 15.08. RBB's Forward P/E has been as high as 9.83 and as low as 7.26, with a median of 8.85, all within the past year.

Investors should also recognize that RBB has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RBB's current P/B looks attractive when compared to its industry's average P/B of 2.02. Over the past year, RBB's P/B has been as high as 1.19 and as low as 0.74, with a median of 1.06.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RBB has a P/S ratio of 3.14. This compares to its industry's average P/S of 3.34.

Finally, investors should note that RBB has a P/CF ratio of 8.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.50. Over the past 52 weeks, RBB's P/CF has been as high as 11.69 and as low as 7.31, with a median of 8.58.

These are just a handful of the figures considered in RBB 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 RBB is an impressive value stock right now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.