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.
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 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 Viacom . VIAB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.34. This compares to its industry's average Forward P/E of 11.95. Over the past year, VIAB's Forward P/E has been as high as 8.95 and as low as 6, with a median of 7.08.
VIAB is also sporting a PEG ratio of 1.13. 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. VIAB's PEG compares to its industry's average PEG of 1.20. Within the past year, VIAB's PEG has been as high as 1.25 and as low as 0.76, with a median of 0.91.
Investors should also recognize that VIAB has a P/B ratio of 1.86. 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. VIAB's current P/B looks attractive when compared to its industry's average P/B of 2.14. Over the past year, VIAB's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.77.
Finally, our model also underscores that VIAB has a P/CF ratio of 1.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. VIAB's P/CF compares to its industry's average P/CF of 5.68. Over the past 52 weeks, VIAB's P/CF has been as high as 1.99 and as low as 1.37, with a median of 1.74.
These are only a few of the key metrics included in Viacom'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, VIAB looks like an impressive value stock at the moment.
Image: Bigstock
Are Investors Undervaluing Viacom (VIAB) Right Now?
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.
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 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 Viacom . VIAB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.34. This compares to its industry's average Forward P/E of 11.95. Over the past year, VIAB's Forward P/E has been as high as 8.95 and as low as 6, with a median of 7.08.
VIAB is also sporting a PEG ratio of 1.13. 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. VIAB's PEG compares to its industry's average PEG of 1.20. Within the past year, VIAB's PEG has been as high as 1.25 and as low as 0.76, with a median of 0.91.
Investors should also recognize that VIAB has a P/B ratio of 1.86. 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. VIAB's current P/B looks attractive when compared to its industry's average P/B of 2.14. Over the past year, VIAB's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.77.
Finally, our model also underscores that VIAB has a P/CF ratio of 1.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. VIAB's P/CF compares to its industry's average P/CF of 5.68. Over the past 52 weeks, VIAB's P/CF has been as high as 1.99 and as low as 1.37, with a median of 1.74.
These are only a few of the key metrics included in Viacom'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, VIAB looks like an impressive value stock at the moment.