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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Fox (FOXA – Free Report) . FOXA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.45, while its industry has an average P/E of 27.91. Over the past year, FOXA’s Forward P/E has been as high as 12.95 and as low as 7.82, with a median of 9.50.
We also note that FOXA holds a PEG ratio of 1.26. 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. FOXA’s industry has an average PEG of 1.79 right now. Over the last 12 months, FOXA’s PEG has been as high as 2.07 and as low as 0.34, with a median of 1.13.
We should also highlight that FOXA has a P/B ratio of 1.98. 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 4.43. FOXA’s P/B has been as high as 2.01 and as low as 1.31, with a median of 1.52, over the past year.
Finally, we should also recognize that FOXA has a P/CF ratio of 9.84. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 14.84. Over the past year, FOXA’s P/CF has been as high as 12.45 and as low as 7.27, with a median of 9.32.
These are only a few of the key metrics included in Fox’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FOXA looks like an impressive value stock at the moment.
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