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Should Value Investors Buy CNB Financial (CCNE) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now 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 9.52. This compares to its industry's average Forward P/E of 10.91. CCNE's Forward P/E has been as high as 12.09 and as low as 6.43, with a median of 8.47, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.78. This compares to its industry's average P/S of 2.3.

Finally, our model also underscores that CCNE has a P/CF ratio of 8.74. 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 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 10.09 and as low as 4.85, with a median of 6.47.

Value investors will likely look at more than just these metrics, but the above data helps show that CNB Financial is likely undervalued currently. And when considering the strength of its earnings outlook, CCNE sticks out at as one of the market's strongest value stocks.


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