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FOXA or NFLX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Fox (FOXA - Free Report) or Netflix (NFLX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Fox and Netflix are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FOXA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FOXA currently has a forward P/E ratio of 9.17, while NFLX has a forward P/E of 39.60. We also note that FOXA has a PEG ratio of 0.77. 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. NFLX currently has a PEG ratio of 1.86.
Another notable valuation metric for FOXA is its P/B ratio of 1.41. 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. By comparison, NFLX has a P/B of 9.46.
These metrics, and several others, help FOXA earn a Value grade of A, while NFLX has been given a Value grade of D.
FOXA sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that FOXA is the better option right now.
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FOXA or NFLX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Fox (FOXA - Free Report) or Netflix (NFLX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Fox and Netflix are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FOXA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FOXA currently has a forward P/E ratio of 9.17, while NFLX has a forward P/E of 39.60. We also note that FOXA has a PEG ratio of 0.77. 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. NFLX currently has a PEG ratio of 1.86.
Another notable valuation metric for FOXA is its P/B ratio of 1.41. 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. By comparison, NFLX has a P/B of 9.46.
These metrics, and several others, help FOXA earn a Value grade of A, while NFLX has been given a Value grade of D.
FOXA sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that FOXA is the better option right now.