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Should Value Investors Buy First United (FUNC) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
First United (FUNC - Free Report) is a stock many investors are watching right now. FUNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.88. This compares to its industry's average Forward P/E of 9.55. Over the past year, FUNC's Forward P/E has been as high as 8.41 and as low as 5.38, with a median of 7.05.
Investors should also recognize that FUNC has a P/B ratio of 1. The P/B ratio pits a stock's market value against 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 1.47. Over the past 12 months, FUNC's P/B has been as high as 1.15 and as low as 0.82, with a median of 0.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUNC has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.86.
Finally, our model also underscores that FUNC has a P/CF ratio of 5.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FUNC's P/CF compares to its industry's average P/CF of 14.06. Over the past year, FUNC's P/CF has been as high as 7.92 and as low as 5.43, with a median of 6.70.
Orrstown Financial Services (ORRF - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. ORRF is a # 2 (Buy) stock with a Value grade of A.
Orrstown Financial Services also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 1.47. Over the past year, its P/B ratio has been as high as 1.13, as low as 0.93, with a median of 1.
Value investors will likely look at more than just these metrics, but the above data helps show that First United and Orrstown Financial Services are likely undervalued currently. And when considering the strength of its earnings outlook, FUNC and ORRF sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy First United (FUNC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
First United (FUNC - Free Report) is a stock many investors are watching right now. FUNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.88. This compares to its industry's average Forward P/E of 9.55. Over the past year, FUNC's Forward P/E has been as high as 8.41 and as low as 5.38, with a median of 7.05.
Investors should also recognize that FUNC has a P/B ratio of 1. The P/B ratio pits a stock's market value against 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 1.47. Over the past 12 months, FUNC's P/B has been as high as 1.15 and as low as 0.82, with a median of 0.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUNC has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.86.
Finally, our model also underscores that FUNC has a P/CF ratio of 5.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FUNC's P/CF compares to its industry's average P/CF of 14.06. Over the past year, FUNC's P/CF has been as high as 7.92 and as low as 5.43, with a median of 6.70.
Orrstown Financial Services (ORRF - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. ORRF is a # 2 (Buy) stock with a Value grade of A.
Orrstown Financial Services also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 1.47. Over the past year, its P/B ratio has been as high as 1.13, as low as 0.93, with a median of 1.
Value investors will likely look at more than just these metrics, but the above data helps show that First United and Orrstown Financial Services are likely undervalued currently. And when considering the strength of its earnings outlook, FUNC and ORRF sticks out as one of the market's strongest value stocks.