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Are Investors Undervaluing F.N.B. (FNB) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

F.N.B. (FNB - Free Report) is a stock many investors are watching right now. FNB is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

We also note that FNB holds a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FNB's industry has an average PEG of 0.94 right now. Over the past 52 weeks, FNB's PEG has been as high as 10.22 and as low as 0.71, with a median of 0.96.

We should also highlight that FNB has a P/B ratio of 0.9. The P/B is a method of comparing a stock's market value to 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 1.74. Over the past year, FNB's P/B has been as high as 0.99 and as low as 0.64, with a median of 0.84.

Finally, investors will want to recognize that FNB has a P/CF ratio of 10.95. 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 15.52. Within the past 12 months, FNB's P/CF has been as high as 13.28 and as low as 7.85, with a median of 10.45.

If you're looking for another solid Banks - Southeast value stock, take a look at Live Oak Bancshares (LOB - Free Report) . LOB is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Live Oak Bancshares sports a P/B ratio of 1.59 as well; this compares to its industry's price-to-book ratio of 1.74. In the past 52 weeks, LOB's P/B has been as high as 2.33, as low as 1.02, with a median of 1.51.

Value investors will likely look at more than just these metrics, but the above data helps show that F.N.B. and Live Oak Bancshares are likely undervalued currently. And when considering the strength of its earnings outlook, FNB and LOB sticks out as one of the market's strongest value stocks.


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F.N.B. Corporation (FNB) - free report >>

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