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Should Value Investors Buy Medallion Financial (MFIN) Stock?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Medallion Financial (MFIN - Free Report) . MFIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.15, which compares to its industry's average of 9.56. MFIN's Forward P/E has been as high as 6.36 and as low as 3.85, with a median of 4.73, all within the past year.
Investors should also recognize that MFIN has a P/B ratio of 0.47. 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. MFIN's current P/B looks attractive when compared to its industry's average P/B of 1.04. Over the past year, MFIN's P/B has been as high as 0.55 and as low as 0.38, with a median of 0.45.
Finally, investors will want to recognize that MFIN has a P/CF ratio of 3.75. 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. MFIN's current P/CF looks attractive when compared to its industry's average P/CF of 8.61. Over the past 52 weeks, MFIN's P/CF has been as high as 4.42 and as low as 2.48, with a median of 3.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Medallion Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MFIN feels like a great value stock at the moment.
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Should Value Investors Buy Medallion Financial (MFIN) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Medallion Financial (MFIN - Free Report) . MFIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.15, which compares to its industry's average of 9.56. MFIN's Forward P/E has been as high as 6.36 and as low as 3.85, with a median of 4.73, all within the past year.
Investors should also recognize that MFIN has a P/B ratio of 0.47. 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. MFIN's current P/B looks attractive when compared to its industry's average P/B of 1.04. Over the past year, MFIN's P/B has been as high as 0.55 and as low as 0.38, with a median of 0.45.
Finally, investors will want to recognize that MFIN has a P/CF ratio of 3.75. 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. MFIN's current P/CF looks attractive when compared to its industry's average P/CF of 8.61. Over the past 52 weeks, MFIN's P/CF has been as high as 4.42 and as low as 2.48, with a median of 3.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Medallion Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MFIN feels like a great value stock at the moment.