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Should Value Investors Buy Publicis Groupe (PUBGY) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Publicis Groupe (PUBGY - Free Report) is a stock many investors are watching right now. PUBGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

PUBGY is also sporting a PEG ratio of 1.34. 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. PUBGY's PEG compares to its industry's average PEG of 1.45. Over the last 12 months, PUBGY's PEG has been as high as 2.57 and as low as 0.95, with a median of 1.34.

Investors should also recognize that PUBGY has a P/B ratio of 1.93. 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. PUBGY's current P/B looks attractive when compared to its industry's average P/B of 5.17. Over the past 12 months, PUBGY's P/B has been as high as 2.09 and as low as 1.18, with a median of 1.91.

These are only a few of the key metrics included in Publicis Groupe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PUBGY looks like an impressive value stock at the moment.


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