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Are Investors Undervaluing First National (FXNC) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 to watch right now is First National (FXNC - Free Report) . FXNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.60, which compares to its industry's average of 10.05. FXNC's Forward P/E has been as high as 12.27 and as low as 6.19, with a median of 9.70, all within the past year.
Another notable valuation metric for FXNC is its P/B ratio of 0.91. 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 1.67. Over the past year, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.47. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that FXNC 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. FXNC's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Within the past 12 months, FXNC's P/CF has been as high as 11.69 and as low as 4.70, with a median of 6.42.
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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Are Investors Undervaluing First National (FXNC) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 to watch right now is First National (FXNC - Free Report) . FXNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.60, which compares to its industry's average of 10.05. FXNC's Forward P/E has been as high as 12.27 and as low as 6.19, with a median of 9.70, all within the past year.
Another notable valuation metric for FXNC is its P/B ratio of 0.91. 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 1.67. Over the past year, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.47. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that FXNC 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. FXNC's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Within the past 12 months, FXNC's P/CF has been as high as 11.69 and as low as 4.70, with a median of 6.42.
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.