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Is Chemung Financial (CHMG) a Great Value Stock Right Now?

Zacks Equity Research
Business First Bancshares, Inc. (BFST) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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 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.

One company value investors might notice is Chemung Financial (CHMG). CHMG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that CHMG has a P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CHMG's current P/B looks attractive when compared to its industry's average P/B of 1.66. Within the past 52 weeks, CHMG's P/B has been as high as 1.68 and as low as 1.18, with a median of 1.39.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CHMG has a P/S ratio of 2.58. This compares to its industry's average P/S of 2.92.

Finally, we should also recognize that CHMG has a P/CF ratio of 9.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.90. CHMG's P/CF has been as high as 17.64 and as low as 7.64, with a median of 14.48, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Chemung Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CHMG feels like a great value stock at the moment.


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