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Are Investors Undervaluing These Finance Stocks 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Chemung Financial Corp (CHMG - Free Report) . CHMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 10.56. Over the past year, CHMG's Forward P/E has been as high as 11.23 and as low as 8.37, with a median of 9.91.
We should also highlight that CHMG has a P/B ratio of 1.03. 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 solid versus its industry's average P/B of 1.66. Over the past 12 months, CHMG's P/B has been as high as 1.12 and as low as 0.98, with a median of 1.03.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHMG has a P/S ratio of 2.35. This compares to its industry's average P/S of 3.17.
Finally, our model also underscores that CHMG has a P/CF ratio of 6.19. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.07. Within the past 12 months, CHMG's P/CF has been as high as 7.79 and as low as 6, with a median of 6.43.
Another great Banks - Southeast stock you could consider is Capstar Financial , which is a # 2 (Buy) stock with a Value Score of A.
Capstar Financial also has a P/B ratio of 1.23 compared to its industry's price-to-book ratio of 1.66. Over the past year, its P/B ratio has been as high as 1.48, as low as 1.11, with a median of 1.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Chemung Financial Corp and Capstar Financial are likely undervalued currently. And when considering the strength of its earnings outlook, CHMG and CSTR sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Finance Stocks Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Chemung Financial Corp (CHMG - Free Report) . CHMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 10.56. Over the past year, CHMG's Forward P/E has been as high as 11.23 and as low as 8.37, with a median of 9.91.
We should also highlight that CHMG has a P/B ratio of 1.03. 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 solid versus its industry's average P/B of 1.66. Over the past 12 months, CHMG's P/B has been as high as 1.12 and as low as 0.98, with a median of 1.03.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CHMG has a P/S ratio of 2.35. This compares to its industry's average P/S of 3.17.
Finally, our model also underscores that CHMG has a P/CF ratio of 6.19. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.07. Within the past 12 months, CHMG's P/CF has been as high as 7.79 and as low as 6, with a median of 6.43.
Another great Banks - Southeast stock you could consider is Capstar Financial , which is a # 2 (Buy) stock with a Value Score of A.
Capstar Financial also has a P/B ratio of 1.23 compared to its industry's price-to-book ratio of 1.66. Over the past year, its P/B ratio has been as high as 1.48, as low as 1.11, with a median of 1.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Chemung Financial Corp and Capstar Financial are likely undervalued currently. And when considering the strength of its earnings outlook, CHMG and CSTR sticks out as one of the market's strongest value stocks.