Should Value Investors Buy Bank of Commerce (BOCH) Stock?
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, 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.
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.
One company value investors might notice is Bank of Commerce (BOCH). BOCH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that BOCH holds a PEG ratio of 1.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BOCH's PEG compares to its industry's average PEG of 1.93.
Another valuation metric that we should highlight is BOCH's P/B ratio of 0.80. 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. BOCH's current P/B looks attractive when compared to its industry's average P/B of 1.16. Over the past year, BOCH's P/B has been as high as 1.29 and as low as 0.61, with a median of 0.79.
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. BOCH has a P/S ratio of 2.01. This compares to its industry's average P/S of 2.2.
Finally, investors should note that BOCH has a P/CF ratio of 9.09. 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 13.83. BOCH's P/CF has been as high as 12.52 and as low as 6.58, with a median of 8.74, all within the past year.
These are just a handful of the figures considered in Bank of Commerce'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 BOCH is an impressive value stock right now.
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Bank of Commerce Holdings CA (BOCH): Free Stock Analysis Report
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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.