While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CNX Midstream . CNXM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.58. This compares to its industry's average Forward P/E of 13.11. Over the past 52 weeks, CNXM's Forward P/E has been as high as 9.23 and as low as 6.05, with a median of 7.25.
Another notable valuation metric for CNXM is its P/B ratio of 2.18. The P/B ratio pits a stock's market value against 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 2.36. Over the past year, CNXM's P/B has been as high as 3.34 and as low as 2.06, with a median of 2.40.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CNXM has a P/S ratio of 3.25. This compares to its industry's average P/S of 3.28.
Finally, investors will want to recognize that CNXM has a P/CF ratio of 5.08. 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 6.92. Within the past 12 months, CNXM's P/CF has been as high as 9.11 and as low as 4.82, with a median of 6.05.
These are only a few of the key metrics included in CNX Midstream'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, CNXM looks like an impressive value stock at the moment.
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Are Investors Undervaluing CNX Midstream (CNXM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CNX Midstream . CNXM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.58. This compares to its industry's average Forward P/E of 13.11. Over the past 52 weeks, CNXM's Forward P/E has been as high as 9.23 and as low as 6.05, with a median of 7.25.
Another notable valuation metric for CNXM is its P/B ratio of 2.18. The P/B ratio pits a stock's market value against 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 2.36. Over the past year, CNXM's P/B has been as high as 3.34 and as low as 2.06, with a median of 2.40.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CNXM has a P/S ratio of 3.25. This compares to its industry's average P/S of 3.28.
Finally, investors will want to recognize that CNXM has a P/CF ratio of 5.08. 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 6.92. Within the past 12 months, CNXM's P/CF has been as high as 9.11 and as low as 4.82, with a median of 6.05.
These are only a few of the key metrics included in CNX Midstream'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, CNXM looks like an impressive value stock at the moment.