Are Investors Undervaluing Alerus Financial (ALRS) 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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company value investors might notice is Alerus Financial (ALRS). ALRS is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.48 right now. For comparison, its industry sports an average P/E of 22.97. ALRS's Forward P/E has been as high as 19.71 and as low as 7.50, with a median of 9.47, all within the past year. Another notable valuation metric for ALRS is its P/B ratio of 1.1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ALRS's current P/B looks attractive when compared to its industry's average P/B of 3.21. ALRS's P/B has been as high as 1.60 and as low as 0.80, with a median of 1.07, over the past year.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALRS has a P/S ratio of 1.49. This compares to its industry's average P/S of 2.31.Finally, investors should note that ALRS has a P/CF ratio of 10.27. 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. ALRS's P/CF compares to its industry's average P/CF of 16.41. Over the past 52 weeks, ALRS's P/CF has been as high as 41.87 and as low as 9.07, with a median of 13.60.These figures are just a handful of the metrics value investors tend to look at, but they help show that Alerus Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALRS feels like a great value stock at the moment.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>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 Alerus Financial (ALRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks