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Should Value Investors Buy BCB Bancorp NJ (BCBP) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

BCB Bancorp NJ (BCBP) is a stock many investors are watching right now. BCBP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.84, which compares to its industry's average of 9.66. Over the past 52 weeks, BCBP's Forward P/E has been as high as 9.82 and as low as 7.96, with a median of 8.70.

Investors should also recognize that BCBP has a P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BCBP's current P/B looks attractive when compared to its industry's average P/B of 1.49. Within the past 52 weeks, BCBP's P/B has been as high as 1.38 and as low as 0.97, with a median of 1.10.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCBP has a P/S ratio of 2.73. This compares to its industry's average P/S of 2.8.

Finally, investors should note that BCBP has a P/CF ratio of 8.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BCBP's P/CF compares to its industry's average P/CF of 14.26. Over the past year, BCBP's P/CF has been as high as 9.55 and as low as 7.16, with a median of 8.10.

Investors could also keep in mind S&T Bancorp (STBA), an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, S&T Bancorp holds a P/B ratio of 0.96 and its industry's price-to-book ratio is 1.49. STBA's P/B has been as high as 1.15, as low as 0.90, with a median of 1 over the past 12 months.

These are just a handful of the figures considered in BCB Bancorp NJ and S&T 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 BCBP and STBA is an impressive value stock right now.


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BCB Bancorp, Inc. NJ (BCBP) : Free Stock Analysis Report
 
S&T Bancorp, Inc. (STBA) : Free Stock Analysis Report
 
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