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.
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.
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 stock to keep an eye on is Townsquare Media (TSQ - Free Report) . TSQ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is TSQ's P/B ratio of 2.93. 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. TSQ's current P/B looks attractive when compared to its industry's average P/B of 3.58. TSQ's P/B has been as high as 6.91 and as low as 2.25, with a median of 4.15, over the past year.
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. TSQ has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.68.
Finally, investors should note that TSQ has a P/CF ratio of 4.46. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSQ's P/CF compares to its industry's average P/CF of 12.85. Over the past 52 weeks, TSQ's P/CF has been as high as 7.11 and as low as 1.46, with a median of 3.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Townsquare Media is likely undervalued currently. And when considering the strength of its earnings outlook, TSQ sticks out at as one of the market's strongest value stocks.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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.
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.
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 stock to keep an eye on is Townsquare Media (TSQ - Free Report) . TSQ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is TSQ's P/B ratio of 2.93. 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. TSQ's current P/B looks attractive when compared to its industry's average P/B of 3.58. TSQ's P/B has been as high as 6.91 and as low as 2.25, with a median of 4.15, over the past year.
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. TSQ has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.68.
Finally, investors should note that TSQ has a P/CF ratio of 4.46. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSQ's P/CF compares to its industry's average P/CF of 12.85. Over the past 52 weeks, TSQ's P/CF has been as high as 7.11 and as low as 1.46, with a median of 3.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Townsquare Media is likely undervalued currently. And when considering the strength of its earnings outlook, TSQ sticks out at as one of the market's strongest value stocks.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on TSQ - FREE