Back to top

Image: Bigstock

Is TEGNA Inc. (TGNA) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

One stock to keep an eye on is TEGNA Inc. (TGNA - Free Report) . TGNA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

TGNA is also sporting a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TGNA's industry has an average PEG of 2.50 right now. Within the past year, TGNA's PEG has been as high as 0.98 and as low as 0.46, with a median of 0.75.

Finally, our model also underscores that TGNA has a P/CF ratio of 7.76. 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. TGNA's P/CF compares to its industry's average P/CF of 23.95. Within the past 12 months, TGNA's P/CF has been as high as 9.85 and as low as 5.29, with a median of 6.86.

Value investors will likely look at more than just these metrics, but the above data helps show that TEGNA Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, TGNA sticks out at as one of the market's strongest value stocks.


In-Depth Zacks Research for the Tickers Above


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


TEGNA Inc. (TGNA) - free report >>

Published in