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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Charter Communications (CHTR) is a stock many investors are watching right now. CHTR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
CHTR is also sporting a PEG ratio of 0.43. 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. CHTR's industry currently sports an average PEG of 1.26. CHTR's PEG has been as high as 1.67 and as low as 0.38, with a median of 0.58, all within the past year.
Finally, we should also recognize that CHTR has a P/CF ratio of 4.38. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.97. Over the past year, CHTR's P/CF has been as high as 4.43 and as low as 2.95, with a median of 3.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Charter Communications is likely undervalued currently. And when considering the strength of its earnings outlook, CHTR sticks out at as one of the market's strongest value stocks.
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Charter Communications, Inc. (CHTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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