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Is Orchid Island (ORC) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Orchid Island (ORC) is a stock many investors are watching right now. ORC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.59 right now. For comparison, its industry sports an average P/E of 6.66. Over the past 52 weeks, ORC's Forward P/E has been as high as 7.97 and as low as 2.23, with a median of 6.28.

We should also highlight that ORC has a P/B ratio of 1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.58. Over the past year, ORC's P/B has been as high as 1.07 and as low as 0.30, with a median of 0.92.

These are just a handful of the figures considered in Orchid Island'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 ORC is an impressive value stock right now.


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