Should Value Investors Buy CNB Financial (CCNE) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is CNB Financial (CCNE). CCNE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.32, which compares to its industry's average of 8.38. Over the past year, CCNE's Forward P/E has been as high as 8.05 and as low as 5.42, with a median of 7.22.
We should also highlight that CCNE has a P/B ratio of 0.79. 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. This stock's P/B looks attractive against its industry's average P/B of 1.17. Over the past year, CCNE's P/B has been as high as 1.23 and as low as 0.72, with a median of 1.05.
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. CCNE has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.77.
Finally, our model also underscores that CCNE has a P/CF ratio of 5.85. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.08. Within the past 12 months, CCNE's P/CF has been as high as 8.06 and as low as 5.21, with a median of 6.67.
Financial Institutions (FISI) may be another strong Banks - Northeast stock to add to your shortlist. FISI is a # 2 (Buy) stock with a Value grade of A.
Additionally, Financial Institutions has a P/B ratio of 0.66 while its industry's price-to-book ratio sits at 1.17. For FISI, this valuation metric has been as high as 1.08, as low as 0.57, with a median of 0.94 over the past year.
These are only a few of the key metrics included in CNB Financial and Financial Institutions 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 FISI look like an impressive value stock at the moment.
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CNB Financial Corporation (CCNE) : Free Stock Analysis Report
Financial Institutions, Inc. (FISI) : Free Stock Analysis Report
