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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Fox (FOXA) is a stock many investors are watching right now. FOXA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.24 right now. For comparison, its industry sports an average P/E of 30.38. FOXA's Forward P/E has been as high as 14.74 and as low as 10.80, with a median of 12.55, all within the past year.
Another notable valuation metric for FOXA is its P/B ratio of 2.24. 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 attractive against its industry's average P/B of 5.99. Within the past 52 weeks, FOXA's P/B has been as high as 2.31 and as low as 1.66, with a median of 2.03.
Finally, our model also underscores that FOXA has a P/CF ratio of 10.42. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.94. Over the past year, FOXA's P/CF has been as high as 11.64 and as low as 8.27, with a median of 9.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Fox is likely undervalued currently. And when considering the strength of its earnings outlook, FOXA sticks out as one of the market's strongest value stocks.
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Fox Corporation (FOXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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