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Is Gray Television (GTN) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 value investors might notice is Gray Television (GTN - Free Report) . GTN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.97, while its industry has an average P/E of 15.95. Over the past 52 weeks, GTN's Forward P/E has been as high as 16.41 and as low as 3.77, with a median of 5.77.
Investors should also note that GTN holds a PEG ratio of 0.70. 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. GTN's PEG compares to its industry's average PEG of 1.59. Over the past 52 weeks, GTN's PEG has been as high as 1.64 and as low as 0.38, with a median of 0.58.
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. GTN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.57.
Townsquare Media (TSQ - Free Report) may be another strong Broadcast Radio and Television stock to add to your shortlist. TSQ is a # 2 (Buy) stock with a Value grade of A.
Shares of Townsquare Media are currently trading at a forward earnings multiple of 3.27 and a PEG ratio of 0.27 compared to its industry's P/E and PEG ratios of 15.95 and 1.59, respectively.
Over the past year, TSQ's P/E has been as high as 8.71, as low as 3.15, with a median of 5.30; its PEG ratio has been as high as 0.37, as low as 0.26, with a median of 0.58 during the same time period.
Townsquare Media also has a P/B ratio of 2.19 compared to its industry's price-to-book ratio of 3.60. Over the past year, its P/B ratio has been as high as 5.39, as low as 2.08, with a median of 3.40.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gray Television and Townsquare Media are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTN and TSQ feels like a great value stock at the moment.
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Is Gray Television (GTN) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 value investors might notice is Gray Television (GTN - Free Report) . GTN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.97, while its industry has an average P/E of 15.95. Over the past 52 weeks, GTN's Forward P/E has been as high as 16.41 and as low as 3.77, with a median of 5.77.
Investors should also note that GTN holds a PEG ratio of 0.70. 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. GTN's PEG compares to its industry's average PEG of 1.59. Over the past 52 weeks, GTN's PEG has been as high as 1.64 and as low as 0.38, with a median of 0.58.
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. GTN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.57.
Townsquare Media (TSQ - Free Report) may be another strong Broadcast Radio and Television stock to add to your shortlist. TSQ is a # 2 (Buy) stock with a Value grade of A.
Shares of Townsquare Media are currently trading at a forward earnings multiple of 3.27 and a PEG ratio of 0.27 compared to its industry's P/E and PEG ratios of 15.95 and 1.59, respectively.
Over the past year, TSQ's P/E has been as high as 8.71, as low as 3.15, with a median of 5.30; its PEG ratio has been as high as 0.37, as low as 0.26, with a median of 0.58 during the same time period.
Townsquare Media also has a P/B ratio of 2.19 compared to its industry's price-to-book ratio of 3.60. Over the past year, its P/B ratio has been as high as 5.39, as low as 2.08, with a median of 3.40.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gray Television and Townsquare Media are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTN and TSQ feels like a great value stock at the moment.