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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Eagle Bancorp (EGBN) is a stock many investors are watching right now. EGBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.26, which compares to its industry's average of 9.98. Over the past 52 weeks, EGBN's Forward P/E has been as high as 11.41 and as low as 5.90, with a median of 9.55.
Investors should also recognize that EGBN has a P/B ratio of 0.70. 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 solid versus its industry's average P/B of 0.92. EGBN's P/B has been as high as 1.45 and as low as 0.68, with a median of 0.94, over the past year.
Finally, our model also underscores that EGBN has a P/CF ratio of 6.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.35. Over the past 52 weeks, EGBN's P/CF has been as high as 10.56 and as low as 5.47, with a median of 7.84.
These are only a few of the key metrics included in Eagle Bancorp'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, EGBN looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research