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Is First National (FXNC) 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.

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.

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 National (FXNC - Free Report) . FXNC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.75 right now. For comparison, its industry sports an average P/E of 10.15. Over the past year, FXNC's Forward P/E has been as high as 12.27 and as low as 6.19, with a median of 9.57.

Investors should also recognize that FXNC has a P/B ratio of 0.98. 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. FXNC's current P/B looks attractive when compared to its industry's average P/B of 1.60. Within the past 52 weeks, FXNC's P/B has been as high as 1.22 and as low as 0.77, with a median of 0.98.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FXNC has a P/S ratio of 1.58. This compares to its industry's average P/S of 1.81.

Finally, our model also underscores that FXNC has a P/CF ratio of 9.41. 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. FXNC's P/CF compares to its industry's average P/CF of 12.34. FXNC's P/CF has been as high as 11.69 and as low as 4.70, with a median of 5.96, all within the past year.

These are just a handful of the figures considered in First National'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 FXNC is an impressive value stock right now.


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