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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is LCNB (LCNB - Free Report) . LCNB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.33. This compares to its industry's average Forward P/E of 9.81. Over the last 12 months, LCNB's Forward P/E has been as high as 14.13 and as low as 8.06, with a median of 9.43.
Another valuation metric that we should highlight is LCNB's P/B ratio of 0.82. 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. LCNB's current P/B looks attractive when compared to its industry's average P/B of 1.01. LCNB's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.83, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCNB has a P/S ratio of 1.7. This compares to its industry's average P/S of 1.87.
Finally, investors will want to recognize that LCNB has a P/CF ratio of 10.62. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.38. Within the past 12 months, LCNB's P/CF has been as high as 29.50 and as low as 9.93, with a median of 15.02.
Value investors will likely look at more than just these metrics, but the above data helps show that LCNB is likely undervalued currently. And when considering the strength of its earnings outlook, LCNB sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing LCNB (LCNB) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is LCNB (LCNB - Free Report) . LCNB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.33. This compares to its industry's average Forward P/E of 9.81. Over the last 12 months, LCNB's Forward P/E has been as high as 14.13 and as low as 8.06, with a median of 9.43.
Another valuation metric that we should highlight is LCNB's P/B ratio of 0.82. 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. LCNB's current P/B looks attractive when compared to its industry's average P/B of 1.01. LCNB's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.83, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LCNB has a P/S ratio of 1.7. This compares to its industry's average P/S of 1.87.
Finally, investors will want to recognize that LCNB has a P/CF ratio of 10.62. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.38. Within the past 12 months, LCNB's P/CF has been as high as 29.50 and as low as 9.93, with a median of 15.02.
Value investors will likely look at more than just these metrics, but the above data helps show that LCNB is likely undervalued currently. And when considering the strength of its earnings outlook, LCNB sticks out as one of the market's strongest value stocks.