Should Value Investors Buy F.N.B. (FNB) Stock?

FNB

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is F.N.B. (FNB - Free Report) . FNB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.11, while its industry has an average P/E of 9.91. Over the last 12 months, FNB's Forward P/E has been as high as 13.07 and as low as 7.83, with a median of 9.36.

We should also highlight that FNB has a P/B ratio of 0.92. 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 stock's P/B looks attractive against its industry's average P/B of 2.06. Over the past 12 months, FNB's P/B has been as high as 0.96 and as low as 0.70, with a median of 0.80.

Finally, we should also recognize that FNB has a P/CF ratio of 10.61. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 13.76. Within the past 12 months, FNB's P/CF has been as high as 11.28 and as low as 8.88, with a median of 10.37.

These figures are just a handful of the metrics value investors tend to look at, but they help show that F.N.B. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNB feels like a great value stock at the moment.

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