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Should Value Investors Buy CNO Financial Group (CNO) Stock?
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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.
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.
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.
CNO Financial Group (CNO - Free Report) is a stock many investors are watching right now. CNO 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 8.10. This compares to its industry's average Forward P/E of 8.72. Over the past 52 weeks, CNO's Forward P/E has been as high as 11.41 and as low as 7.59, with a median of 9.88.
Another valuation metric that we should highlight is CNO's P/B ratio of 0.97. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.06. Over the past year, CNO's P/B has been as high as 1.05 and as low as 0.52, with a median of 0.61.
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. CNO has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.71.
Finally, investors will want to recognize that CNO has a P/CF ratio of 2.64. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.70. Over the past 52 weeks, CNO's P/CF has been as high as 4.53 and as low as 2.36, with a median of 3.97.
Investors could also keep in mind Ping An Insurance Co. of China (PNGAY - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Ping An Insurance Co. of China also has a P/B ratio of 0.55 compared to its industry's price-to-book ratio of 2.06. Over the past year, its P/B ratio has been as high as 0.95, as low as 0.53, with a median of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that CNO Financial Group and Ping An Insurance Co. of China are likely undervalued currently. And when considering the strength of its earnings outlook, CNO and PNGAY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy CNO Financial Group (CNO) Stock?
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.
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.
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.
CNO Financial Group (CNO - Free Report) is a stock many investors are watching right now. CNO 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 8.10. This compares to its industry's average Forward P/E of 8.72. Over the past 52 weeks, CNO's Forward P/E has been as high as 11.41 and as low as 7.59, with a median of 9.88.
Another valuation metric that we should highlight is CNO's P/B ratio of 0.97. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.06. Over the past year, CNO's P/B has been as high as 1.05 and as low as 0.52, with a median of 0.61.
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. CNO has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.71.
Finally, investors will want to recognize that CNO has a P/CF ratio of 2.64. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.70. Over the past 52 weeks, CNO's P/CF has been as high as 4.53 and as low as 2.36, with a median of 3.97.
Investors could also keep in mind Ping An Insurance Co. of China (PNGAY - Free Report) , an Insurance - Multi line stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Ping An Insurance Co. of China also has a P/B ratio of 0.55 compared to its industry's price-to-book ratio of 2.06. Over the past year, its P/B ratio has been as high as 0.95, as low as 0.53, with a median of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that CNO Financial Group and Ping An Insurance Co. of China are likely undervalued currently. And when considering the strength of its earnings outlook, CNO and PNGAY sticks out as one of the market's strongest value stocks.