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Should Value Investors Buy Publicis Groupe (PUBGY) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now 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 10.89, while its industry has an average P/E of 11.99. 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 1.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PUBGY's industry has an average PEG of 2.30 right now. Over the past 52 weeks, PUBGY's PEG has been as high as 3.95 and as low as 0.95, with a median of 2.29.
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.