Yahoo Finance Are Investors Undervaluing Private Bancorp of America (PBAM) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Private Bancorp of America (PBAM). PBAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.50, while its industry has an average P/E of 11.75. Over the last 12 months, PBAM's Forward P/E has been as high as 7.18 and as low as 4.84, with a median of 6.48.
We should also highlight that PBAM has a P/B ratio of 1.03. 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. This stock's P/B looks attractive against its industry's average P/B of 1.67. Within the past 52 weeks, PBAM's P/B has been as high as 1.14 and as low as 0.90, with a median of 1.08.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PBAM has a P/S ratio of 1.45. This compares to its industry's average P/S of 1.67.
Finally, we should also recognize that PBAM has a P/CF ratio of 5.28. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 13.53. PBAM's P/CF has been as high as 6.84 and as low as 4.21, with a median of 5.19, all within the past year.
These are only a few of the key metrics included in Private Bancorp of America's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PBAM looks like an impressive value stock at the moment.
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Private Bancorp of America, Inc. (PBAM) : Free Stock Analysis Report
