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Should Value Investors Buy Citizens Financial Services (CZFS) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Citizens Financial Services (CZFS - Free Report) . CZFS 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 7.56, while its industry has an average P/E of 9.71. Over the past 52 weeks, CZFS's Forward P/E has been as high as 12.19 and as low as 6.76, with a median of 9.31.

Finally, our model also underscores that CZFS has a P/CF ratio of 8.46. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.35. Over the past year, CZFS's P/CF has been as high as 11.78 and as low as 6.93, with a median of 9.22.

These are only a few of the key metrics included in Citizens Financial Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CZFS looks like an impressive value stock at the moment.


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