Is CNX Midstream (CNXM) a Great Value Stock Right Now?
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.
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 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 stock to keep an eye on is CNX Midstream (CNXM). CNXM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.13 right now. For comparison, its industry sports an average P/E of 13.17. Over the past year, CNXM's Forward P/E has been as high as 9.23 and as low as 5.82, with a median of 7.19.
Another notable valuation metric for CNXM is its P/B ratio of 2.06. 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. This stock's P/B looks solid versus its industry's average P/B of 2.25. CNXM's P/B has been as high as 3.13 and as low as 1.95, with a median of 2.35, over the past year.
Finally, we should also recognize that CNXM has a P/CF ratio of 4.81. 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. CNXM's current P/CF looks attractive when compared to its industry's average P/CF of 6.61. Over the past year, CNXM's P/CF has been as high as 8.45 and as low as 4.54, with a median of 5.84.
These are just a handful of the figures considered in CNX Midstream'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 CNXM is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.