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Are Investors Undervaluing Nexstar Media Group (NXST) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Nexstar Media Group (NXST - Free Report) . NXST is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors should also recognize that NXST has a P/B ratio of 2.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NXST's current P/B looks attractive when compared to its industry's average P/B of 4.73. NXST's P/B has been as high as 2.90 and as low as 2.05, with a median of 2.40, over the past year.

Finally, our model also underscores that NXST has a P/CF ratio of 3.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.03. NXST's P/CF has been as high as 5.46 and as low as 3.51, with a median of 4.31, all within the past year.

These are only a few of the key metrics included in Nexstar Media Group'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, NXST looks like an impressive value stock at the moment.

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