Are Investors Undervaluing Old Second Bancorp (OSBC) 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.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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 company to watch right now is Old Second Bancorp (OSBC). OSBC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.64, while its industry has an average P/E of 9.22. Over the past year, OSBC's Forward P/E has been as high as 10.39 and as low as 7.12, with a median of 8.81.Another valuation metric that we should highlight is OSBC's P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.76. Within the past 52 weeks, OSBC's P/B has been as high as 1.30 and as low as 0.98, with a median of 1.15.Finally, our model also underscores that OSBC has a P/CF ratio of 6.88. 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 13. Over the past year, OSBC's P/CF has been as high as 9.42 and as low as 6.31, with a median of 8.Investors could also keep in mind QCR Holdings (QCRH), an Banks - Midwest stock with a Zacks Rank of # 2 (Buy) and Value grade of A.QCR Holdings also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 1.76. Over the past year, its P/B ratio has been as high as 1.62, as low as 1.01, with a median of 1.29.These are just a handful of the figures considered in Old Second Bancorp and QCR Holdings'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 OSBC and QCRH is an impressive value stock right now.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Old Second Bancorp, Inc. (OSBC): Free Stock Analysis Report QCR Holdings, Inc. (QCRH): 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