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Should Value Investors Buy First Horizon (FHN) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is First Horizon (FHN - Free Report) . FHN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.94 right now. For comparison, its industry sports an average P/E of 12.77. FHN's Forward P/E has been as high as 13.38 and as low as 5.20, with a median of 8.95, all within the past year.
Investors should also recognize that FHN has a P/B ratio of 0.94. 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 1.88. Over the past 12 months, FHN's P/B has been as high as 1.77 and as low as 0.66, with a median of 0.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FHN has a P/S ratio of 1.56. This compares to its industry's average P/S of 1.85.
Finally, we should also recognize that FHN has a P/CF ratio of 7.18. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.13. Within the past 12 months, FHN's P/CF has been as high as 14.25 and as low as 5.03, with a median of 6.26.
These are only a few of the key metrics included in First Horizon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FHN looks like an impressive value stock at the moment.
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Should Value Investors Buy First Horizon (FHN) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company value investors might notice is First Horizon (FHN - Free Report) . FHN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.94 right now. For comparison, its industry sports an average P/E of 12.77. FHN's Forward P/E has been as high as 13.38 and as low as 5.20, with a median of 8.95, all within the past year.
Investors should also recognize that FHN has a P/B ratio of 0.94. 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 1.88. Over the past 12 months, FHN's P/B has been as high as 1.77 and as low as 0.66, with a median of 0.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FHN has a P/S ratio of 1.56. This compares to its industry's average P/S of 1.85.
Finally, we should also recognize that FHN has a P/CF ratio of 7.18. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.13. Within the past 12 months, FHN's P/CF has been as high as 14.25 and as low as 5.03, with a median of 6.26.
These are only a few of the key metrics included in First Horizon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FHN looks like an impressive value stock at the moment.