Back to top

Image: Bigstock

Is Rogers Communication (RCI) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 value investors might notice is Rogers Communication (RCI - Free Report) . RCI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.73. This compares to its industry's average Forward P/E of 18.68. Over the past year, RCI's Forward P/E has been as high as 16.90 and as low as 9.83, with a median of 14.92.

We should also highlight that RCI has a P/B ratio of 2.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.91. Over the past year, RCI's P/B has been as high as 3.62 and as low as 2.12, with a median of 2.87.

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. RCI has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.19.

Finally, investors will want to recognize that RCI has a P/CF ratio of 7.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RCI's current P/CF looks attractive when compared to its industry's average P/CF of 9.14. RCI's P/CF has been as high as 7.48 and as low as 4.76, with a median of 6.52, all within the past year.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Rogers Communication, Inc. (RCI) - free report >>

Published in