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Should Value Investors Buy AMC Networks (AMCX) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
AMC Networks (AMCX - Free Report) is a stock many investors are watching right now. AMCX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We also note that AMCX holds a PEG ratio of 0.72. 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 industry currently sports an average PEG of 1.57. Within the past year, AMCX's PEG has been as high as 1.30 and as low as 0.63, with a median of 0.90.
We should also highlight that AMCX has a P/B ratio of 6.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AMCX's current P/B looks attractive when compared to its industry's average P/B of 19.61. AMCX's P/B has been as high as 19.33 and as low as 6.12, with a median of 10.40, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMCX has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.29.
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?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
AMC Networks (AMCX - Free Report) is a stock many investors are watching right now. AMCX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We also note that AMCX holds a PEG ratio of 0.72. 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 industry currently sports an average PEG of 1.57. Within the past year, AMCX's PEG has been as high as 1.30 and as low as 0.63, with a median of 0.90.
We should also highlight that AMCX has a P/B ratio of 6.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AMCX's current P/B looks attractive when compared to its industry's average P/B of 19.61. AMCX's P/B has been as high as 19.33 and as low as 6.12, with a median of 10.40, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMCX has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.29.
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.