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Are Investors Undervaluing Chemung Financial (CHMG) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Chemung Financial (CHMG - Free Report) . CHMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 12.58. Over the past year, CHMG's Forward P/E has been as high as 13.17 and as low as 6.77, with a median of 10.34.
Another notable valuation metric for CHMG is its P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.91. Within the past 52 weeks, CHMG's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.76.
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. CHMG has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.67.
Finally, our model also underscores that CHMG has a P/CF ratio of 6.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11. Over the past 52 weeks, CHMG's P/CF has been as high as 9.21 and as low as 5.38, with a median of 6.81.
These are only a few of the key metrics included in Chemung 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, CHMG looks like an impressive value stock at the moment.
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Are Investors Undervaluing Chemung Financial (CHMG) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Chemung Financial (CHMG - Free Report) . CHMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.95. This compares to its industry's average Forward P/E of 12.58. Over the past year, CHMG's Forward P/E has been as high as 13.17 and as low as 6.77, with a median of 10.34.
Another notable valuation metric for CHMG is its P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.91. Within the past 52 weeks, CHMG's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.76.
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. CHMG has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.67.
Finally, our model also underscores that CHMG has a P/CF ratio of 6.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11. Over the past 52 weeks, CHMG's P/CF has been as high as 9.21 and as low as 5.38, with a median of 6.81.
These are only a few of the key metrics included in Chemung 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, CHMG looks like an impressive value stock at the moment.