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Is Rogers Communication (RCI) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Rogers Communication (RCI - Free Report) is a stock many investors are watching right now. RCI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 16.06 right now. For comparison, its industry sports an average P/E of 18.47. Over the past 52 weeks, RCI's Forward P/E has been as high as 16.90 and as low as 9.83, with a median of 15.01.

Investors should also recognize that RCI has a P/B ratio of 2.53. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.91. Over the past 12 months, RCI's P/B has been as high as 3.62 and as low as 2.12, with a median of 2.85.

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. RCI has a P/S ratio of 1.82. This compares to its industry's average P/S of 2.22.

Finally, investors should note that RCI has a P/CF ratio of 7.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.14. Over the past year, RCI's P/CF has been as high as 7.58 and as low as 4.76, with a median of 6.52.

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.


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