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Is Gray Television (GTN) a Great Value Stock Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Gray Television (GTN - Free Report) is a stock many investors are watching right now. GTN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that GTN holds a PEG ratio of 0.81. 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. GTN's PEG compares to its industry's average PEG of 2.21. Over the past 52 weeks, GTN's PEG has been as high as 2.26 and as low as 0.32, with a median of 0.68.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GTN has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Gray Television is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTN feels like a great value stock at the moment.


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