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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Saga Communications (SGA) is a stock many investors are watching right now. SGA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 20.97, which compares to its industry's average of 30.28. Over the past year, SGA's Forward P/E has been as high as 99.23 and as low as 8.80, with a median of 25.54.
Finally, our model also underscores that SGA has a P/CF ratio of 8.43. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SGA's P/CF compares to its industry's average P/CF of 19.61. SGA's P/CF has been as high as 9.13 and as low as 6.75, with a median of 8.10, all within the past year.
These are just a handful of the figures considered in Saga Communications's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SGA is an impressive value stock right now.
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Saga Communications, Inc. (SGA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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