Looking for the best value stocks? Tracey Ryniec, Stock Strategist at Zacks Investment Research, discusses two stocks that might be worth a closer look by value investors: First NBC Bank Holding Co (FNBC) and Great Western Bancorp (GWB) .
The regional banks are the best place to find value in this market. Not only are both of these banks cheap, but they are growing earnings estimates this year and next year. Both have been benefitting from an increase in commercial construction spending.
First NBC Bank is seeing increased business in the New Orleans area as hotels, restaurants and apartment building construction booms. Great Western Bancorp is benefitting from the strong agribusiness sector. The farmers are still doing well.
Fundamentals are solid. Both companies are Zacks Rank #2 (Buy) stocks and have price-to-book ratios well under the rest of the banking industry.
But what else should investors take away from these two companies?