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Should Value Investors Buy Bank OZK (OZK) Stock?
ZACKSยท2025-09-17 14:40

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions [2] - Zacks has developed a Style Scores system to highlight stocks with specific traits, particularly beneficial for value investors [3] - Bank OZK (OZK) and Webster Financial (WBS) are highlighted as strong value stocks with favorable metrics [4][7] Bank OZK (OZK) - OZK holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 7.82, significantly lower than the industry average of 10.03 [4] - The P/B ratio for OZK is 1.06, which is competitive against the industry average of 1.09, with a 52-week range of 0.78 to 1.12 [5] - OZK's P/CF ratio stands at 7.02, well below the industry average of 16.17, indicating potential undervaluation [6] Webster Financial (WBS) - WBS also has a Zacks Rank of 2 (Buy) and a Value Score of A, with a Forward P/E ratio of 9.55, compared to the industry average of 10.03 [7] - The PEG ratio for WBS is 0.51, indicating strong growth potential relative to its valuation, while the industry average PEG is 0.36 [7] - WBS's P/B ratio is 1.13, slightly above the industry average of 1.09, with a 52-week range of 0.79 to 1.21 [8] Overall Valuation Insights - Both OZK and WBS exhibit strong value characteristics, suggesting they may be undervalued in the current market [9]