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Is F.N.B. (FNB) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

F.N.B. (FNB - Free Report) is a stock many investors are watching right now. FNB 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 10.80, while its industry has an average P/E of 13.02. Over the past 52 weeks, FNB's Forward P/E has been as high as 11.16 and as low as 8.74, with a median of 9.90.

Investors will also notice that FNB has a PEG ratio of 1.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FNB's industry has an average PEG of 1.43 right now. FNB's PEG has been as high as 1.24 and as low as 0.92, with a median of 1.05, all within the past year.

Another notable valuation metric for FNB is its P/B ratio of 0.86. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. Over the past 12 months, FNB's P/B has been as high as 0.90 and as low as 0.73, with a median of 0.82.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FNB has a P/S ratio of 2.65. This compares to its industry's average P/S of 2.87.

Finally, investors should note that FNB has a P/CF ratio of 8.99. 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. FNB's current P/CF looks attractive when compared to its industry's average P/CF of 13.42. Over the past 52 weeks, FNB's P/CF has been as high as 9.27 and as low as 6.95, with a median of 8.12.

These are only a few of the key metrics included in F.N.B.'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, FNB looks like an impressive value stock at the moment.


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