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.
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.
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.
Fox (FOX) is a stock many investors are watching right now. FOX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.28 right now. For comparison, its industry sports an average P/E of 30.25. Over the past year, FOX's Forward P/E has been as high as 13.47 and as low as 8.52, with a median of 10.71.
Investors will also notice that FOX has a PEG ratio of 1.11. 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. FOX's industry has an average PEG of 1.43 right now. Over the past 52 weeks, FOX's PEG has been as high as 7.31 and as low as 1.11, with a median of 1.72.
Finally, our model also underscores that FOX has a P/CF ratio of 10.32. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FOX's current P/CF looks attractive when compared to its industry's average P/CF of 19.69. FOX's P/CF has been as high as 10.82 and as low as 7.47, with a median of 8.87, all within the past year.
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, FOX sticks out at as one of the market's strongest value stocks.
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Fox Corporation (FOX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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