Is CNX Resources (CNX) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is CNX Resources (CNX). CNX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNX has a P/S ratio of 1.42. This compares to its industry's average P/S of 1.64.
Finally, investors will want to recognize that CNX has a P/CF ratio of 1.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.16. CNX's P/CF has been as high as 5.16 and as low as 1.70, with a median of 2.74, 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 CNX Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNX feels like a great value stock at the moment.
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