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Is TEGNA Inc. (TGNA) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is TEGNA Inc. (TGNA - Free Report) . TGNA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that TGNA has a PEG ratio of 0.95. 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 currently sports an average PEG of 2.39. Over the last 12 months, TGNA's PEG has been as high as 1.03 and as low as 0.46, with a median of 0.77.

Finally, investors should note that TGNA has a P/CF ratio of 6.85. 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. TGNA's current P/CF looks attractive when compared to its industry's average P/CF of 23.95. Over the past 52 weeks, TGNA's P/CF has been as high as 7.63 and as low as 4.83, with a median of 6.37.

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.


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