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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Farmers National Banc (FMNB). FMNB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.64, while its industry has an average P/E of 10.36. Over the past 52 weeks, FMNB's Forward P/E has been as high as 11.56 and as low as 7.89, with a median of 9.13.
We should also highlight that FMNB has a P/B ratio of 1.25. 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. FMNB's current P/B looks attractive when compared to its industry's average P/B of 2.02. Within the past 52 weeks, FMNB's P/B has been as high as 1.49 and as low as 1.04, with a median of 1.22.
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. FMNB has a P/S ratio of 1.85. This compares to its industry's average P/S of 2.12.
Finally, investors should note that FMNB has a P/CF ratio of 9.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.61. Within the past 12 months, FMNB's P/CF has been as high as 11.33 and as low as 8.10, with a median of 9.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Farmers National Banc is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMNB feels like a great value stock at the moment.
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Farmers National Banc Corp. (FMNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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