Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Fox (FOXA) is a stock many investors are watching right now. FOXA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.48. This compares to its industry's average Forward P/E of 30.74. Over the past 52 weeks, FOXA's Forward P/E has been as high as 13.77 and as low as 8.88, with a median of 11.84.
FOXA is also sporting a PEG ratio of 1.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FOXA's PEG compares to its industry's average PEG of 1.44. Within the past year, FOXA's PEG has been as high as 2.07 and as low as 1.04, with a median of 1.24.
Another valuation metric that we should highlight is FOXA's P/B ratio of 2.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.91. FOXA's P/B has been as high as 2.27 and as low as 1.46, with a median of 1.88, over the past year.
Finally, our model also underscores that FOXA has a P/CF ratio of 11.04. 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. FOXA's current P/CF looks attractive when compared to its industry's average P/CF of 19.67. Over the past year, FOXA's P/CF has been as high as 11.64 and as low as 8.01, with a median of 9.49.
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, FOXA feels like a great value stock at the moment.
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Fox Corporation (FOXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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