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Should Value Investors Buy Eagle Bancorp (EGBN) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 - Free Report) is a stock many investors are watching right now. EGBN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.26, which compares to its industry's average of 11.29. Over the past 52 weeks, EGBN's Forward P/E has been as high as 15.48 and as low as 7.61, with a median of 10.88.
We should also highlight that EGBN has a P/B ratio of 0.62. 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 1.32. EGBN's P/B has been as high as 0.74 and as low as 0.39, with a median of 0.56, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGBN has a P/S ratio of 1.05. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that EGBN has a P/CF ratio of 10.74. 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. EGBN's current P/CF looks attractive when compared to its industry's average P/CF of 24.65. Over the past 52 weeks, EGBN's P/CF has been as high as 12.84 and as low as 5.76, with a median of 7.87.
These are just a handful of the figures considered in Eagle Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EGBN is an impressive value stock right now.
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Should Value Investors Buy Eagle Bancorp (EGBN) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 - Free Report) is a stock many investors are watching right now. EGBN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.26, which compares to its industry's average of 11.29. Over the past 52 weeks, EGBN's Forward P/E has been as high as 15.48 and as low as 7.61, with a median of 10.88.
We should also highlight that EGBN has a P/B ratio of 0.62. 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 1.32. EGBN's P/B has been as high as 0.74 and as low as 0.39, with a median of 0.56, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGBN has a P/S ratio of 1.05. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that EGBN has a P/CF ratio of 10.74. 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. EGBN's current P/CF looks attractive when compared to its industry's average P/CF of 24.65. Over the past 52 weeks, EGBN's P/CF has been as high as 12.84 and as low as 5.76, with a median of 7.87.
These are just a handful of the figures considered in Eagle Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EGBN is an impressive value stock right now.