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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Citizens Community Bancorp (CZWI – Free Report) is a stock many investors are watching right now. CZWI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.50. This compares to its industry’s average Forward P/E of 14.15. Over the last 12 months, CZWI’s Forward P/E has been as high as 12.93 and as low as 7.87, with a median of 10.21.
Finally, our model also underscores that CZWI has a P/CF ratio of 8.92. 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. CZWI’s P/CF compares to its industry’s average P/CF of 10.25. Over the past 52 weeks, CZWI’s P/CF has been as high as 9.23 and as low as 6.10, with a median of 7.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Citizens Community Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CZWI feels like a great value stock at the moment.
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