Are Investors Undervaluing First United (FUNC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
First United (FUNC) is a stock many investors are watching right now. FUNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.62, which compares to its industry's average of 9.15. Over the past 52 weeks, FUNC's Forward P/E has been as high as 8.41 and as low as 5.54, with a median of 7.09.
We should also highlight that FUNC has a P/B ratio of 0.96. 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 solid versus its industry's average P/B of 1.28. Within the past 52 weeks, FUNC's P/B has been as high as 1.15 and as low as 0.82, with a median of 0.95.
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. FUNC has a P/S ratio of 1.66. This compares to its industry's average P/S of 2.73.
Finally, investors should note that FUNC has a P/CF ratio of 5.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FUNC's current P/CF looks attractive when compared to its industry's average P/CF of 13.41. FUNC's P/CF has been as high as 7.73 and as low as 5.59, with a median of 6.75, all within the past year.
These are only a few of the key metrics included in First United's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUNC looks like an impressive value stock at the moment.
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