Are Investors Undervaluing CNO Financial Group (CNO) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is CNO Financial Group (CNO). CNO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that CNO has a P/B ratio of 1.60. The P/B is a method of comparing a stock's market value to 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 2.52. Over the past year, CNO's P/B has been as high as 2.13 and as low as 1.15, with a median of 1.40.
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 0.75. This compares to its industry's average P/S of 0.93.
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
