Yahoo Finance Should Value Investors Buy CNO Financial Group (CNO) Stock?
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 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 CNO Financial Group (CNO). CNO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.07. This compares to its industry's average Forward P/E of 8.84. Over the last 12 months, CNO's Forward P/E has been as high as 11.12 and as low as 7.59, with a median of 9.
We should also highlight that CNO has a P/B ratio of 1.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.59. Over the past year, CNO's P/B has been as high as 2.13 and as low as 0.54, with a median of 1.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CNO has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.9.
Finally, investors should note that CNO has a P/CF ratio of 3.48. 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. CNO's P/CF compares to its industry's average P/CF of 6.40. Within the past 12 months, CNO's P/CF has been as high as 4.29 and as low as 2.36, with a median of 3.06.
Value investors will likely look at more than just these metrics, but the above data helps show that CNO Financial Group is likely undervalued currently. And when considering the strength of its earnings outlook, CNO sticks out at as one of the market's strongest value stocks.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
