Should Value Investors Buy Fvcbankcorp, Inc. (FVCB) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Fvcbankcorp, Inc. (FVCB). FVCB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that FVCB has a P/B ratio of 0.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.91. FVCB's P/B has been as high as 1.58 and as low as 0.75, with a median of 1.34, over the past year.
Finally, investors should note that FVCB has a P/CF ratio of 8.40. 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. FVCB's P/CF compares to its industry's average P/CF of 11. FVCB's P/CF has been as high as 20.08 and as low as 8.19, with a median of 14.36, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fvcbankcorp, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FVCB feels like a great value stock at the moment.
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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.