Are Investors Undervaluing CNB Financial (CCNE) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 CNB Financial (CCNE). CCNE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.71 right now. For comparison, its industry sports an average P/E of 9.04. CCNE's Forward P/E has been as high as 8.05 and as low as 5.42, with a median of 7.23, all within the past year.
We should also highlight that CCNE has a P/B ratio of 0.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CCNE's current P/B looks attractive when compared to its industry's average P/B of 1.15. Over the past 12 months, CCNE's P/B has been as high as 1.31 and as low as 0.72, with a median of 1.06.
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. CCNE has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.84.
Finally, our model also underscores that CCNE has a P/CF ratio of 6.15. 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. CCNE's current P/CF looks attractive when compared to its industry's average P/CF of 10.78. Over the past 52 weeks, CCNE's P/CF has been as high as 8.23 and as low as 5.21, with a median of 6.77.
Investors could also keep in mind Equity Bancshares (EQBK), an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Equity Bancshares holds a P/B ratio of 0.99 and its industry's price-to-book ratio is 1.15. EQBK's P/B has been as high as 1.53, as low as 0.76, with a median of 1.14 over the past 12 months.
These are only a few of the key metrics included in CNB Financial and Equity Bancshares strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CCNE and EQBK look like an impressive value stock at the moment.
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CNB Financial Corporation (CCNE) : Free Stock Analysis Report
Equity Bancshares, Inc. (EQBK) : Free Stock Analysis Report
