Are Investors Undervaluing Private Bancorp of America (PBAM) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One company value investors might notice is Private Bancorp of America (PBAM). PBAM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.35, which compares to its industry's average of 13.20. Over the past year, PBAM's Forward P/E has been as high as 9.80 and as low as 7.41, with a median of 8.07. Another notable valuation metric for PBAM is its P/B ratio of 1.39. 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. PBAM's current P/B looks attractive when compared to its industry's average P/B of 1.95. Over the past year, PBAM's P/B has been as high as 1.56 and as low as 1.21, with a median of 1.35.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBAM has a P/S ratio of 2.02. This compares to its industry's average P/S of 2.33.Finally, we should also recognize that PBAM has a P/CF ratio of 8.64. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.13. Within the past 12 months, PBAM's P/CF has been as high as 10.53 and as low as 7.92, with a median of 8.58.Value investors will likely look at more than just these metrics, but the above data helps show that Private Bancorp of America is likely undervalued currently. And when considering the strength of its earnings outlook, PBAM sticks out as one of the market's strongest value stocks.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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 Private Bancorp of America, Inc. (PBAM): 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