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Should Value Investors Buy CNB Financial (CCNE) Stock?

Zacks Equity Research
·3 min read

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

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 has a Forward P/E ratio of 8.36. This compares to its industry's average Forward P/E of 10.13. Over the last 12 months, CCNE's Forward P/E has been as high as 12.52 and as low as 6.43, with a median of 10.02.

Another notable valuation metric for CCNE is its P/B ratio of 0.83. 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 0.92. Within the past 52 weeks, CCNE's P/B has been as high as 1.71 and as low as 0.66, with a median of 1.41.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCNE has a P/S ratio of 1.65. This compares to its industry's average P/S of 1.95.

Finally, our model also underscores that CCNE has a P/CF ratio of 6.38. 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 11.35. Over the past 52 weeks, CCNE's P/CF has been as high as 11.69 and as low as 4.85, with a median of 9.57.

These are only a few of the key metrics included in CNB Financial'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, CCNE looks like an impressive value stock at the moment.


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Zacks Investment Research