Are Investors Undervaluing Fulton Financial (FULT) 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.
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.
One stock to keep an eye on is Fulton Financial (FULT). FULT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that FULT has a P/B ratio of 1.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.37. Over the past year, FULT's P/B has been as high as 1.23 and as low as 0.66, with a median of 0.92.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FULT has a P/S ratio of 1.87. This compares to its industry's average P/S of 1.88.
Finally, investors should note that FULT has a P/CF ratio of 7.81. 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. FULT's current P/CF looks attractive when compared to its industry's average P/CF of 11.81. Over the past year, FULT's P/CF has been as high as 8.93 and as low as 4.86, with a median of 6.67.
Investors could also keep in mind Midland States Bancorp (MSBI), an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Midland States Bancorp also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 1.37. Over the past year, its P/B ratio has been as high as 0.93, as low as 0.62, with a median of 0.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Fulton Financial and Midland States Bancorp are likely undervalued currently. And when considering the strength of its earnings outlook, FULT and MSBI sticks out as one of the market's strongest value stocks.
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Fulton Financial Corporation (FULT) : Free Stock Analysis Report
Midland States Bancorp, Inc. (MSBI) : Free Stock Analysis Report
