Are investors undervaluing Randolph Bancorp (RNDB) right now?
WWhile the proven Zacks Rank emphasizes earnings estimates and revisions of estimates to find solid stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we always look at trends in value, growth, and momentum to uncover great companies.
Given these trends, value investing is clearly one of the most preferred ways to find solid stocks in any type of market. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.
In addition to the Zacks Rankings, investors looking for stocks with specific characteristics can use our Style Scores system. Of course, value investors will be more interested in the “Value” category of the system. Stocks with “A” ratings for value and high Zacks ranks are some of the most profitable stocks available at any given time.
One stock to watch is Randolph Bancorp (RNDB). RNDB currently has a Zacks # 1 (strong buy) ranking, as well as a Value rating of A. The stock is currently trading with a P / E ratio of 11.08. By comparison, its industry has an average P / E of 12.67. Over the past year, the forward P / E of RNDB has reached 14.29 and as low as 10.40, with a median of 11.60.
Investors should also recognize that RNDB has a P / N ratio of 1.22. The P / B ratio is used to compare the market value of a stock with its book value, which is defined as total assets minus total liabilities. This stock’s P / B looks attractive compared to its industry’s average P / B of 1.69. Over the past year, GNI’s P / B has reached 1.36 and as low as 1.04, with a median of 1.12.
Value investors also like the P / S ratio, which is calculated by simply dividing the price of a stock by the sales of the company. This is a popular metric because sales are more difficult to manipulate on an income statement, so they are often seen as a better indicator of performance. RNDB has a P / S ratio of 1.76. This compares to its industry’s average P / S of 2.88.
Finally, investors will want to recognize that RNDB has a P / CF ratio of 7.65. This figure highlights a company’s operating cash flow and can be used to find undervalued companies given their impressive cash flow prospects. RNDB’s current P / CF looks attractive compared to its industry average P / CF of 17.13. Over the past 52 weeks, the P / CF of RNDB has been as high as 8.52 and as low as 3.76, with a median of 4.69.
Value investors will likely look at more than these metrics, but the data above helps to show that Randolph Bancorp is likely undervalued right now. And given its strong earnings outlook, RNDB stands out as one of the strongest value stocks on the market.
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