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Is F.N.B. (FNB) Stock Undervalued 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.

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 has a Forward P/E ratio of 9.19. This compares to its industry's average Forward P/E of 10.11. Over the past 52 weeks, FNB's Forward P/E has been as high as 13.07 and as low as 8.70, with a median of 10.92.

Investors should also recognize that FNB has a P/B ratio of 0.80. Investors use the P/B ratio to look at a stock's market value versus 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 1.79. Over the past year, FNB's P/B has been as high as 0.89 and as low as 0.69, with a median of 0.78.

Finally, our model also underscores that FNB has a P/CF ratio of 10.85. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FNB's current P/CF looks attractive when compared to its industry's average P/CF of 11.32. FNB's P/CF has been as high as 13.48 and as low as 9.44, with a median of 10.64, all within the past year.

Investors could also keep in mind Summit Financial Group , an Banks - Southeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Summit Financial Group sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 1.79. In the past 52 weeks, SMMF's P/B has been as high as 1.18, as low as 0.92, with a median of 1.07.

These are just a handful of the figures considered in F.N.B. and Summit Financial Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FNB and SMMF is an impressive value stock right now.


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