Back to top

Image: Bigstock

Are Investors Undervaluing Citizens Financial Services (CZFS) Right Now?

Read MoreHide Full Article

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Citizens Financial Services (CZFS - Free Report) is a stock many investors are watching right now. CZFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.39, while its industry has an average P/E of 9.76. Over the past year, CZFS's Forward P/E has been as high as 12.19 and as low as 6.76, with a median of 9.42.

Finally, investors will want to recognize that CZFS has a P/CF ratio of 8.33. 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 11.35. CZFS's P/CF has been as high as 11.78 and as low as 6.93, with a median of 9.35, all within the past year.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Citizens Financial Services Inc. (CZFS) - free report >>

Published in