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Is First Horizon National (FHN) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is First Horizon National (FHN - Free Report) . FHN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.74. This compares to its industry's average Forward P/E of 10.36. Over the last 12 months, FHN's Forward P/E has been as high as 12.24 and as low as 8.01, with a median of 9.92.

Another notable valuation metric for FHN is its P/B ratio of 1.01. 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. FHN's current P/B looks attractive when compared to its industry's average P/B of 1.49. Over the past year, FHN's P/B has been as high as 1.38 and as low as 0.86, with a median of 1.03.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FHN has a P/S ratio of 2.01. This compares to its industry's average P/S of 2.75.

Finally, investors should note that FHN has a P/CF ratio of 7.64. 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. FHN's current P/CF looks attractive when compared to its industry's average P/CF of 10.71. Within the past 12 months, FHN's P/CF has been as high as 24.04 and as low as 6.97, with a median of 8.

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


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