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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
CNX Resources (CNX) is a stock many investors are watching right now. CNX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
CNX is also sporting a PEG ratio of 0.36. 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. CNX's industry has an average PEG of 0.98 right now. Within the past year, CNX's PEG has been as high as 2.39 and as low as 0.36, with a median of 1.57.
Another notable valuation metric for CNX is its 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. CNX's current P/B looks attractive when compared to its industry's average P/B of 1.87. Within the past 52 weeks, CNX's P/B has been as high as 1.44 and as low as 0.70, with a median of 0.93.
Finally, investors should note that CNX has a P/CF ratio of 4.75. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CNX's current P/CF looks attractive when compared to its industry's average P/CF of 6.39. Over the past 52 weeks, CNX's P/CF has been as high as 7.01 and as low as 1.66, with a median of 3.97.
Value investors will likely look at more than just these metrics, but the above data helps show that CNX Resources is likely undervalued currently. And when considering the strength of its earnings outlook, CNX sticks out at as one of the market's strongest value stocks.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpCNX Resources Corporation. (CNX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
