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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company value investors might notice is Fox (FOXA). FOXA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.1, while its industry has an average P/E of 32.63. Over the last 12 months, FOXA's Forward P/E has been as high as 13.77 and as low as 9.09, with a median of 12.04.
We also note that FOXA holds a PEG ratio of 1.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOXA's industry has an average PEG of 1.53 right now. Over the last 12 months, FOXA's PEG has been as high as 2.07 and as low as 1.04, with a median of 1.24.
Another notable valuation metric for FOXA is its P/B ratio of 2.19. The P/B ratio is used to compare a stock's market value with 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 6.42. Over the past 12 months, FOXA's P/B has been as high as 2.27 and as low as 1.46, with a median of 1.89.
Finally, investors should note that FOXA has a P/CF ratio of 11.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FOXA's P/CF compares to its industry's average P/CF of 21.21. Over the past year, FOXA's P/CF has been as high as 11.64 and as low as 8.23, with a median of 9.63.
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, FOXA sticks out as one of the market's strongest value stocks.
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Fox Corporation (FOXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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