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Are Investors Undervaluing Southern Missouri Bancorp (SMBC) Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Southern Missouri Bancorp (SMBC - Free Report) . SMBC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is SMBC's P/B ratio of 1.16. 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 attractive against its industry's average P/B of 1.70. Within the past 52 weeks, SMBC's P/B has been as high as 1.50 and as low as 1.07, with a median of 1.24.

Finally, we should also recognize that SMBC has a P/CF ratio of 10.00. 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 stock's P/CF looks attractive against its industry's average P/CF of 20.42. Within the past 12 months, SMBC's P/CF has been as high as 14.05 and as low as 8.80, with a median of 10.61.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Southern Missouri Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SMBC feels like a great value stock at the moment.


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