Yahoo Finance Should Value Investors Buy First Financial Ban (FFBC) Stock?
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.
One company value investors might notice is First Financial Ban (FFBC). FFBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.94. This compares to its industry's average Forward P/E of 10.16. Over the last 12 months, FFBC's Forward P/E has been as high as 10.76 and as low as 7.29, with a median of 9.21.
We should also highlight that FFBC has a P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.78. Within the past 52 weeks, FFBC's P/B has been as high as 1.08 and as low as 0.78, with a median of 0.92.
Finally, investors will want to recognize that FFBC has a P/CF ratio of 7.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.20. Over the past year, FFBC's P/CF has been as high as 8.30 and as low as 5.40, with a median of 7.21.
These are only a few of the key metrics included in First Financial Ban'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, FFBC looks like an impressive value stock at the moment.
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First Financial Bancorp. (FFBC) : Free Stock Analysis Report
