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Is Publicis Groupe (PUBGY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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.

Publicis Groupe (PUBGY - Free Report) is a stock many investors are watching right now. PUBGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.40. This compares to its industry's average Forward P/E of 11.46. Over the past year, PUBGY's Forward P/E has been as high as 12.64 and as low as 7.15, with a median of 9.72.

Investors will also notice that PUBGY has a PEG ratio of 1.12. 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. PUBGY's industry currently sports an average PEG of 2.17. PUBGY's PEG has been as high as 4.22 and as low as 0.95, with a median of 2.46, all within the past year.

These are only a few of the key metrics included in Publicis Groupe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PUBGY looks like an impressive value stock at the moment.


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