CNB Financial Corporation (CCNE - Free Report) seems to be an attractive pick now on the back of its top-line strength and improving operating backdrop. Further, a rising rate environment, expectations of lesser regulations and the strengthening of domestic economy should continue to support the company’s financials.
Further, analysts seem to be optimistic about CNB Financial prospects as the stock is witnessing upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for 2017 increased 6.7%. Backed by these upward estimate revisions, the company currently carries a Zacks Rank #2 (Buy).
Why the Stock is an Attractive Choice
Revenue Growth: Organic growth remains strong at CNB Financial. Revenues witnessed a compound annual growth rate of 8.4% over the last five years (2012-2016). Further, the top line is expected to increase 17.2% in 2017 and 9.7% for 2018.
Earnings Strength: While CNB Financial’s earnings have remained stable over the last three to five years, it is projected to record earnings growth of 12.7% for the current year compared with the industry average of 10.5%. Also, the earnings momentum is anticipated to continue next year, with 15.6% growth expectation.
Superior Return on Equity: CNB Financial has a return on equity of 9.70% compared with the industry average of 8.59%. This indicates that the company reinvests more efficiently compared to its peers.
Favorable VGM Score: CNB Financial has a VGM Score of B. Our research shows stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Stock Looks Undervalued: The stock currently has a Value Score of B. Also, it looks undervalued with respect to its price-to-earnings and price-to-sales ratios. The company’s trailing 12-month P/E and P/S ratios of 15.44 and 3.29, respectively, are below the industry average of 16.82 and 4.06.
CNB Financial’s shares have gained 17.9% over the past year compared with the industry’s gain of 18.5%. Though the company’s shares have marginally underperformed the industry, the above-mentioned factors should result in improved price performance in the quarters ahead.
Other Stocks to Consider
Some other stocks in the same space worth a look are FB Financial Corporation (FBK - Free Report) , Salisbury Bancorp, Inc. (SAL - Free Report) and Washington Federal, Inc. (WAFD - Free Report) . All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FB Financial’s Zacks Consensus Estimate for current year earnings was revised 3.2% upward over the past 60 days. Also, its share price has jumped 66.9% over the past year.
Salisbury Bancorp witnessed a 2.4% upward earnings estimates revision for the current year, in the past 60 days. Moreover, in the past year, its shares have gained 42.1%.
Washington Federal’s earnings estimates for 2017 were revised nearly 1% upward, over the last 60 days. Further in the past year, its shares have jumped 14.2%.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.
See Stocks Now>>