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Are Investors Undervaluing Publicis Groupe (PUBGY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Publicis Groupe (PUBGY - Free Report) . PUBGY 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 9.81, while its industry has an average P/E of 10.69. Over the last 12 months, PUBGY's Forward P/E has been as high as 12.64 and as low as 7.15, with a median of 9.72.

We also note that PUBGY holds a PEG ratio of 1.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PUBGY's industry currently sports an average PEG of 2.03. Over the last 12 months, PUBGY's PEG has been as high as 4.22 and as low as 0.95, with a median of 2.40.

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


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