Are Investors Undervaluing Byline Bancorp (BY) Right Now?

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on key valuation metrics to identify undervalued stocks [2] Company Analysis: Byline Bancorp (BY) - Byline Bancorp currently holds a Zacks Rank of 2 (Buy) and has received an A grade in the Value category, indicating it is among the strongest value stocks available [3] - The company has a price-to-book (P/B) ratio of 1.22, which is favorable compared to the industry average of 1.42. Over the past year, BY's P/B ratio has fluctuated between a high of 1.27 and a low of 0.87, with a median of 0.98 [4] - Byline Bancorp's price-to-cash flow (P/CF) ratio stands at 10.90, which is attractive relative to the industry's average of 14.98. The P/CF ratio has ranged from a high of 11.34 to a low of 6.73 over the past year, with a median of 8.65 [5] Company Analysis: Isabella Bank (ISBA) - Isabella Bank is also rated 2 (Buy) with a Value score of A, indicating strong value characteristics [6] - The bank has a P/B ratio of 0.74, significantly lower than the industry average of 1.42. Its P/B ratio has varied from a high of 0.88 to a low of 0.66 over the past year, with a median of 0.79 [6] Conclusion on Value Stocks - Both Byline Bancorp and Isabella Bank exhibit strong value grades, suggesting they are currently undervalued. Their solid earnings outlook further supports their status as impressive value stocks [7]