Back to top

Image: Bigstock

Is Entravision Communications (EVC) a Great Value Stock Right Now?

Read MoreHide Full Article

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Entravision Communications (EVC - Free Report) . EVC 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EVC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.69.

Finally, we should also recognize that EVC has a P/CF ratio of 7.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVC's current P/CF looks attractive when compared to its industry's average P/CF of 12.54. Over the past year, EVC's P/CF has been as high as 12.08 and as low as 5.97, with a median of 9.83.

If you're looking for another solid Broadcast Radio and Television value stock, take a look at Gray Television (GTN - Free Report) . GTN is a # 1 (Strong Buy) stock with a Value score of A.

Gray Television is trading at a forward earnings multiple of 4.49 at the moment, with a PEG ratio of 0.45. This compares to its industry's average P/E of 11.93 and average PEG ratio of 1.10.

GTN's price-to-earnings ratio has been as high as 16.41 and as low as 4.26, with a median of 6.85, while its PEG ratio has been as high as 1.64 and as low as 0.43, with a median of 0.69, all within the past year.

Gray Television sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 11.48. In the past 52 weeks, GTN's P/B has been as high as 1.37, as low as 0.99, with a median of 1.19.

These are only a few of the key metrics included in Entravision Communications and Gray Television strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EVC and GTN look like an impressive value stock at the moment.


In-Depth Zacks Research for the Tickers Above


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


Entravision Communications Corporation (EVC) - free report >>

Gray Television, Inc. (GTN) - free report >>

Published in