Is Financial Institutions (FISI) Stock Undervalued Right Now?
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.
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.
Financial Institutions (FISI) is a stock many investors are watching right now. FISI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.91, while its industry has an average P/E of 8.08. Over the past year, FISI's Forward P/E has been as high as 10.05 and as low as 6.74, with a median of 8.60.
Investors should also recognize that FISI has a P/B ratio of 0.93. 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 stock's P/B looks attractive against its industry's average P/B of 1.44. Within the past 52 weeks, FISI's P/B has been as high as 1.11 and as low as 0.90, with a median of 1.03.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FISI has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.68.
Finally, investors should note that FISI has a P/CF ratio of 4.67. 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 14.68. Over the past 52 weeks, FISI's P/CF has been as high as 6.31 and as low as 4.52, with a median of 5.38.
Investors could also keep in mind Meridian Bank (MRBK), an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Meridian Bank holds a P/B ratio of 1.21 and its industry's price-to-book ratio is 1.44. MRBK's P/B has been as high as 1.45, as low as 1.11, with a median of 1.22 over the past 12 months.
These are just a handful of the figures considered in Financial Institutions and Meridian Bank's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FISI and MRBK is an impressive value stock right now.
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Financial Institutions, Inc. (FISI) : Free Stock Analysis Report
Meridian Bank (MRBK) : Free Stock Analysis Report
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