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Is CNB Financial (CCNE) Stock Undervalued Right Now?
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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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is CNB Financial (CCNE - Free Report) . CCNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.28, while its industry has an average P/E of 9.86. Over the last 12 months, CCNE's Forward P/E has been as high as 9.89 and as low as 5.42, with a median of 7.32.
Another valuation metric that we should highlight is CCNE's P/B ratio of 0.96. 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 attractive against its industry's average P/B of 1.40. Within the past 52 weeks, CCNE's P/B has been as high as 1.11 and as low as 0.72, with a median of 0.81.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCNE has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.75.
Finally, investors should note that CCNE has a P/CF ratio of 7.65. 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. CCNE's current P/CF looks attractive when compared to its industry's average P/CF of 13.72. Within the past 12 months, CCNE's P/CF has been as high as 8.06 and as low as 5.21, with a median of 6.03.
If you're looking for another solid Banks - Northeast value stock, take a look at First Bank (FRBA - Free Report) . FRBA is a # 1 (Strong Buy) stock with a Value score of A.
First Bank sports a P/B ratio of 0.80 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, FRBA's P/B has been as high as 0.94, as low as 0.57, with a median of 0.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CNB Financial and First Bank are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCNE and FRBA feels like a great value stock at the moment.
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Is CNB Financial (CCNE) Stock Undervalued Right Now?
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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is CNB Financial (CCNE - Free Report) . CCNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.28, while its industry has an average P/E of 9.86. Over the last 12 months, CCNE's Forward P/E has been as high as 9.89 and as low as 5.42, with a median of 7.32.
Another valuation metric that we should highlight is CCNE's P/B ratio of 0.96. 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 attractive against its industry's average P/B of 1.40. Within the past 52 weeks, CCNE's P/B has been as high as 1.11 and as low as 0.72, with a median of 0.81.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCNE has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.75.
Finally, investors should note that CCNE has a P/CF ratio of 7.65. 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. CCNE's current P/CF looks attractive when compared to its industry's average P/CF of 13.72. Within the past 12 months, CCNE's P/CF has been as high as 8.06 and as low as 5.21, with a median of 6.03.
If you're looking for another solid Banks - Northeast value stock, take a look at First Bank (FRBA - Free Report) . FRBA is a # 1 (Strong Buy) stock with a Value score of A.
First Bank sports a P/B ratio of 0.80 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, FRBA's P/B has been as high as 0.94, as low as 0.57, with a median of 0.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CNB Financial and First Bank are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCNE and FRBA feels like a great value stock at the moment.