Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.
This method discovered several great candidates for value-oriented investors, but today let’s focus on The Liberty Media Group as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for LMCA’s status as a solid value stock below:
Forward PE for Liberty Media
Easily one of the most popular readings for value investors, the forward PE ratio shows us the current price of a stock divided by the full year earnings. Generally speaking, value investors like to see this ratio below 20, though it can vary by industry.
Right now, LMCA has a forward PE of just 10.52, which means that investors are paying $10.52 for each dollar in expected Liberty Media earnings this year. Compared to the industry at large this is pretty favorable as the overall space has an average PE of 15.22 in comparison.
Price/Cash Flow for Liberty Media Stock
An often overlooked ratio that can still be a great indicator of value is the price/cash flow metric. This reading is preferred by some since it avoids amortization and depreciation concerns and can give a more accurate picture of the financial health in a business.
The P/CF ratio for LMCA comes in at 1.39, and since investors are generally looking for a reading under 20 here, this is pretty good news. Meanwhile, we should also point out that the industry average for this metric is 5.60, so Liberty Media has its peers beat in this regard too.
LMCA Earnings Estimate Revisions Moving in the Right Direction
The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow LMCA stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Liberty Media now.
Over the past 60 days, 2 earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that 2 estimates has move upwards with no downward revision for the next year time frame too. These revisions have helped to boost the consensus estimate as 60 days ago LMCA was expected to post earnings of $2.14 per share for the full year though today it looks to have EPS of $2.92 for the full year.
Bottom Line
For the reasons detailed above, investors shouldn’t be surprised to read that we have LMCA as a stock with a Value Score of ‘A’ and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
So if you are a value investor, definitely keep LMCA on your short list as this looks to be a stock that is very well-positioned for gains in the near term.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Looking for a Top Value Stock? 3 Reasons Why Liberty Media (LMCA) is an Excellent Choice
Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.
This method discovered several great candidates for value-oriented investors, but today let’s focus on The Liberty Media Group as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for LMCA’s status as a solid value stock below:
Forward PE for Liberty Media
Easily one of the most popular readings for value investors, the forward PE ratio shows us the current price of a stock divided by the full year earnings. Generally speaking, value investors like to see this ratio below 20, though it can vary by industry.
Right now, LMCA has a forward PE of just 10.52, which means that investors are paying $10.52 for each dollar in expected Liberty Media earnings this year. Compared to the industry at large this is pretty favorable as the overall space has an average PE of 15.22 in comparison.
LIBERTY MEDIA-A PE Ratio (TTM)
LIBERTY MEDIA-A PE Ratio (TTM) | LIBERTY MEDIA-A Quote
Price/Cash Flow for Liberty Media Stock
An often overlooked ratio that can still be a great indicator of value is the price/cash flow metric. This reading is preferred by some since it avoids amortization and depreciation concerns and can give a more accurate picture of the financial health in a business.
The P/CF ratio for LMCA comes in at 1.39, and since investors are generally looking for a reading under 20 here, this is pretty good news. Meanwhile, we should also point out that the industry average for this metric is 5.60, so Liberty Media has its peers beat in this regard too.
LMCA Earnings Estimate Revisions Moving in the Right Direction
The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow LMCA stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Liberty Media now.
Over the past 60 days, 2 earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that 2 estimates has move upwards with no downward revision for the next year time frame too. These revisions have helped to boost the consensus estimate as 60 days ago LMCA was expected to post earnings of $2.14 per share for the full year though today it looks to have EPS of $2.92 for the full year.
Bottom Line
For the reasons detailed above, investors shouldn’t be surprised to read that we have LMCA as a stock with a Value Score of ‘A’ and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
So if you are a value investor, definitely keep LMCA on your short list as this looks to be a stock that is very well-positioned for gains in the near term.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>