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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Townsquare Media (TSQ). TSQ is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.31 right now. For comparison, its industry sports an average P/E of 24.50. Over the past 52 weeks, TSQ's Forward P/E has been as high as 13.87 and as low as 6.20, with a median of 9.85.
We also note that TSQ holds a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSQ's industry currently sports an average PEG of 1.41. Over the last 12 months, TSQ's PEG has been as high as 1.16 and as low as 0.52, with a median of 0.82.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TSQ has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.47.
These are only a few of the key metrics included in Townsquare Media'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, TSQ looks like an impressive value stock at the moment.
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Townsquare Media, Inc. (TSQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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