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Should Value Investors Buy AMC Networks (AMCX) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 AMC Networks (AMCX - Free Report) . AMCX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
AMCX is also sporting a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMCX's PEG compares to its industry's average PEG of 1.60. Within the past year, AMCX's PEG has been as high as 1.32 and as low as 0.63, with a median of 0.92.
Investors should also recognize that AMCX has a P/B ratio of 6.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 19.01. Over the past year, AMCX's P/B has been as high as 19.33 and as low as 6.12, with a median of 10.48.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMCX has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.25.
These are only a few of the key metrics included in AMC Networks'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, AMCX looks like an impressive value stock at the moment.
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Should Value Investors Buy AMC Networks (AMCX) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 AMC Networks (AMCX - Free Report) . AMCX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
AMCX is also sporting a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMCX's PEG compares to its industry's average PEG of 1.60. Within the past year, AMCX's PEG has been as high as 1.32 and as low as 0.63, with a median of 0.92.
Investors should also recognize that AMCX has a P/B ratio of 6.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 19.01. Over the past year, AMCX's P/B has been as high as 19.33 and as low as 6.12, with a median of 10.48.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMCX has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.25.
These are only a few of the key metrics included in AMC Networks'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, AMCX looks like an impressive value stock at the moment.