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Is CNB Financial (CCNE) Stock Undervalued Right Now?

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  • CCNE

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

CNB Financial (CCNE) is a stock many investors are watching right now. CCNE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.08. This compares to its industry's average Forward P/E of 9.76. CCNE's Forward P/E has been as high as 12.52 and as low as 6.43, with a median of 8.47, all within the past year.

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. CCNE has a P/S ratio of 1.79. This compares to its industry's average P/S of 2.22.

Finally, investors should note that CCNE has a P/CF ratio of 8.33. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CCNE's P/CF compares to its industry's average P/CF of 11.35. Over the past 52 weeks, CCNE's P/CF has been as high as 11.67 and as low as 4.85, with a median of 6.47.

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


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