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Are Investors Undervaluing Eutelsat Communications (EUTLF) Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Eutelsat Communications (EUTLF - Free Report) . EUTLF 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 5.08, which compares to its industry's average of 12.06. Over the past year, EUTLF's Forward P/E has been as high as 11.25 and as low as 3.73, with a median of 5.53.

Another valuation metric that we should highlight is EUTLF's P/B ratio of 0.55. 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 0.93. Over the past 12 months, EUTLF's P/B has been as high as 1 and as low as 0.51, with a median of 0.76.

Liberty Media (LSXMK - Free Report) may be another strong Satellite and Communication stock to add to your shortlist. LSXMK is a # 2 (Buy) stock with a Value grade of A.

Liberty Media is currently trading with a Forward P/E ratio of 10.64 while its PEG ratio sits at 0.28. Both of the company's metrics compare favorably to its industry's average P/E of 12.06 and average PEG ratio of 0.32.


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