Top-line strength and robust fundamentals make CNB Financial Corporation CCNE an attractive pick now. Further, a relatively higher rate environment and improving 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 the current year has been revised 2% upward. Thus, the stock currently carries a Zacks Rank #2 (Buy).
CNB Financial’s shares have gained 25% so far this year compared with the industry’s growth of 10.5%.
Why the Stock is an Attractive Choice
Revenue Growth: CNB Financial’s organic growth remains strong. Revenues witnessed a compound annual growth rate of 21.9% over the last five years (2014-2018). Further, the top line is expected to increase 10.2% in 2019.
Earnings Strength: CNB Financial’s earnings growth potential is reflected by 9.2% growth rate recorded over the last three to five years. Further, it is projected to record earnings growth of 14.5% for the current year compared with the industry average of 4.9%. Also, the earnings momentum is anticipated to continue next year, with 7.5% growth expectation.
Superior Return on Equity: CNB Financial has a return on equity of 13.88% compared with the industry average of 10.15%. This indicates that the company reinvests more efficiently compared to its peers.
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 P/E and P/S ratios of 10.99 and 2.5, respectively, are below the industry average of 11.68 and 2.75.
The Value Style Score condenses all valuation metrics into one actionable score, which helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Score of A or B, when combined with Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Some other stocks in the same space worth a look are First Horizon National Corporation FHN, Meridian Bank MRBK and Customers Bancorp, Inc CUBI. All the stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Horizon’s Zacks Consensus Estimate for current-year earnings has been revised 8.2% upward over the past 60 days. Also, its share price has jumped 25.4% so far this year.
Meridian Bank has witnessed a 3.6% upward earnings estimates revision for the current year in the past 60 days. Moreover, year to date, its shares have gained 2%.
Customers Bancorp’s earnings estimates for 2019 have remained stable over the past 30 days. Further, so far this year, its shares have jumped 13%.
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CNB Financial Corporation (CCNE) : Free Stock Analysis Report
First Horizon National Corporation (FHN) : Free Stock Analysis Report
Customers Bancorp, Inc (CUBI) : Free Stock Analysis Report
Meridian Bank (MRBK) : Free Stock Analysis Report
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