Should Value Investors Buy First Horizon (FHN) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 First Horizon (FHN). FHN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.97, while its industry has an average P/E of 12.87. Over the past 52 weeks, FHN's Forward P/E has been as high as 15.75 and as low as 5.20, with a median of 8.95.
We should also highlight that FHN has a P/B ratio of 0.95. 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. FHN's current P/B looks attractive when compared to its industry's average P/B of 1.87. Within the past 52 weeks, FHN's P/B has been as high as 1.77 and as low as 0.66, with a median of 0.83.
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. FHN has a P/S ratio of 1.63. This compares to its industry's average P/S of 1.89.
Finally, our model also underscores that FHN has a P/CF ratio of 7.27. 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. FHN's P/CF compares to its industry's average P/CF of 14.07. Within the past 12 months, FHN's P/CF has been as high as 14.25 and as low as 5.03, with a median of 6.26.
Another great Banks - Southwest stock you could consider is OP Bancorp (OPBK), which is a # 2 (Buy) stock with a Value Score of A.
OP Bancorp sports a P/B ratio of 0.89 as well; this compares to its industry's price-to-book ratio of 1.87. In the past 52 weeks, OPBK's P/B has been as high as 1.01, as low as 0.62, with a median of 0.77.
These are just a handful of the figures considered in First Horizon and OP Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FHN and OPBK is an impressive value stock right now.
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First Horizon Corporation (FHN) : Free Stock Analysis Report
OP Bancorp (OPBK) : Free Stock Analysis Report
