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Are Investors Undervaluing Viad Corp (VVI) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Viad Corp (VVI - Free Report) . VVI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 17.12, which compares to its industry's average of 20.37. Over the last 12 months, VVI's Forward P/E has been as high as 60.33 and as low as 16.76, with a median of 23.45.

We also note that VVI holds a PEG ratio of 1.14. 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. VVI's industry currently sports an average PEG of 1.76. Over the last 12 months, VVI's PEG has been as high as 4.02 and as low as 1.12, with a median of 1.56.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VVI has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.9.

Finally, our model also underscores that VVI has a P/CF ratio of 11.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. VVI's P/CF compares to its industry's average P/CF of 17.36. Within the past 12 months, VVI's P/CF has been as high as 12.33 and as low as 4.34, with a median of 8.03.

Value investors will likely look at more than just these metrics, but the above data helps show that Viad Corp is likely undervalued currently. And when considering the strength of its earnings outlook, VVI sticks out at as one of the market's strongest value stocks.


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