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Is Vector Group (VGR) Stock Undervalued Right Now?

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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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Vector Group (VGR - Free Report) is a stock many investors are watching right now. VGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VGR has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.61.

Finally, our model also underscores that VGR has a P/CF ratio of 18.62. 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. VGR's current P/CF looks attractive when compared to its industry's average P/CF of 26.33. Over the past 52 weeks, VGR's P/CF has been as high as 20.68 and as low as 12.79, with a median of 16.55.

These are only a few of the key metrics included in Vector Group'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, VGR looks like an impressive value stock at the moment.


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