Here's Why UMB Financial (UMBF) is a Strong Value Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future growth potential through earnings and sales metrics [4] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify strong investment opportunities [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.9% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as a declining forecast can negatively impact stock performance [10] Company Spotlight: UMB Financial Corporation - UMB Financial Corporation, based in Kansas City, MO, provides a range of banking and asset servicing solutions [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - UMBF's Value Style Score is B, supported by a forward P/E ratio of 10.53, making it attractive to value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate increasing to $10.70 per share [12] - UMBF has demonstrated an average earnings surprise of +15%, reinforcing its position as a potential investment opportunity [12]