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Is Nexstar Media Group (NXST) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Nexstar Media Group (NXST - Free Report) is a stock many investors are watching right now. NXST is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for NXST is its P/B ratio of 2.48. The P/B ratio pits a stock's market value against 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 4.93. NXST's P/B has been as high as 2.90 and as low as 2.05, with a median of 2.41, over the past year.

Finally, investors should note that NXST has a P/CF ratio of 4.27. 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 current P/CF looks attractive when compared to its industry's average P/CF of 11.49. Over the past year, NXST's P/CF has been as high as 5.46 and as low as 3.51, with a median of 4.24.

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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