Back to top

Image: Bigstock

Should Value Investors Buy Nexstar Media Group (NXST) Stock?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Nexstar Media Group (NXST - Free Report) is a stock many investors are watching right now. NXST is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

We should also highlight that NXST has a P/B ratio of 2.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.86. Over the past 12 months, NXST's P/B has been as high as 2.90 and as low as 2.05, with a median of 2.40.

Finally, our model also underscores that NXST has a P/CF ratio of 3.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NXST's P/CF compares to its industry's average P/CF of 11.33. Over the past 52 weeks, NXST's P/CF has been as high as 5.46 and as low as 3.51, with a median of 4.27.

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.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Nexstar Media Group, Inc (NXST) - free report >>

Published in