Is CNO Financial Group (CNO) a Great Value Stock Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is CNO Financial Group (CNO). CNO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that CNO has a P/B ratio of 1.39. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.45. Within the past 52 weeks, CNO's P/B has been as high as 2.13 and as low as 1.15, with a median of 1.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CNO has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.76.
Finally, our model also underscores that CNO has a P/CF ratio of 8.82. 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 stock's P/CF looks attractive against its industry's average P/CF of 23.52. CNO's P/CF has been as high as 9.28 and as low as 2.17, with a median of 4.86, 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 CNO Financial Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNO feels like a great value stock at the moment.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
