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Is F.N.B. (FNB) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

F.N.B. (FNB - Free Report) is a stock many investors are watching right now. FNB 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 11.16. This compares to its industry's average Forward P/E of 12.97. Over the past year, FNB's Forward P/E has been as high as 11.16 and as low as 8.18, with a median of 9.83.

We also note that FNB holds a PEG ratio of 1.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FNB's industry currently sports an average PEG of 1.42. Within the past year, FNB's PEG has been as high as 1.24 and as low as 0.86, with a median of 1.04.

Another notable valuation metric for FNB is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FNB's current P/B looks attractive when compared to its industry's average P/B of 1.65. Over the past year, FNB's P/B has been as high as 0.90 and as low as 0.70, with a median of 0.82.

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. FNB has a P/S ratio of 2.69. This compares to its industry's average P/S of 2.96.

Finally, investors should note that FNB has a P/CF ratio of 9.27. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.42. Over the past year, FNB's P/CF has been as high as 9.27 and as low as 6.65, with a median of 8.04.

These are just a handful of the figures considered in F.N.B.'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 FNB is an impressive value stock right now.


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