While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company to watch right now is Fox (FOX). FOX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.3, while its industry has an average P/E of 24.21. Over the last 12 months, FOX's Forward P/E has been as high as 13.89 and as low as 10.11, with a median of 11.60.
FOX is also sporting a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FOX's PEG compares to its industry's average PEG of 1.57. FOX's PEG has been as high as 2.17 and as low as 1.08, with a median of 1.42, all within the past year.
Another valuation metric that we should highlight is FOX's P/B ratio of 2.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FOX's current P/B looks attractive when compared to its industry's average P/B of 6.00. Within the past 52 weeks, FOX's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FOX feels like a great value stock at the moment.
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Fox Corporation (FOX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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