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Is Financial Institutions (FISI) Stock Undervalued 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 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 Financial Institutions (FISI - Free Report) . FISI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 9.52. Over the past year, FISI's Forward P/E has been as high as 10.05 and as low as 7.06, with a median of 9.18.
Investors should also recognize that FISI has a P/B ratio of 0.88. Investors use the P/B ratio to look at a stock's market value versus 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 1.63. Over the past 12 months, FISI's P/B has been as high as 1.16 and as low as 0.87, with a median of 1.05.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FISI has a P/S ratio of 1.96. This compares to its industry's average P/S of 2.72.
Finally, our model also underscores that FISI has a P/CF ratio of 5.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FISI's current P/CF looks attractive when compared to its industry's average P/CF of 13.91. FISI's P/CF has been as high as 7.43 and as low as 5.05, with a median of 5.92, all within the past year.
Orrstown Financial Services (ORRF - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. ORRF is a # 2 (Buy) stock with a Value grade of A.
Orrstown Financial Services also has a P/B ratio of 1.04 compared to its industry's price-to-book ratio of 1.63. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.93, with a median of 1.
These are only a few of the key metrics included in Financial Institutions and Orrstown Financial Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FISI and ORRF look like an impressive value stock at the moment.
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Is Financial Institutions (FISI) Stock Undervalued 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 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 Financial Institutions (FISI - Free Report) . FISI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 9.52. Over the past year, FISI's Forward P/E has been as high as 10.05 and as low as 7.06, with a median of 9.18.
Investors should also recognize that FISI has a P/B ratio of 0.88. Investors use the P/B ratio to look at a stock's market value versus 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 1.63. Over the past 12 months, FISI's P/B has been as high as 1.16 and as low as 0.87, with a median of 1.05.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FISI has a P/S ratio of 1.96. This compares to its industry's average P/S of 2.72.
Finally, our model also underscores that FISI has a P/CF ratio of 5.07. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FISI's current P/CF looks attractive when compared to its industry's average P/CF of 13.91. FISI's P/CF has been as high as 7.43 and as low as 5.05, with a median of 5.92, all within the past year.
Orrstown Financial Services (ORRF - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. ORRF is a # 2 (Buy) stock with a Value grade of A.
Orrstown Financial Services also has a P/B ratio of 1.04 compared to its industry's price-to-book ratio of 1.63. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.93, with a median of 1.
These are only a few of the key metrics included in Financial Institutions and Orrstown Financial Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FISI and ORRF look like an impressive value stock at the moment.