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Is SeaWorld Entertainment (SEAS) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is SeaWorld Entertainment . SEAS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.31, which compares to its industry's average of 18.75. Over the last 12 months, SEAS's Forward P/E has been as high as 13.83 and as low as 9.05, with a median of 10.93.

Finally, we should also recognize that SEAS has a P/CF ratio of 8.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SEAS's P/CF compares to its industry's average P/CF of 20.45. Over the past 52 weeks, SEAS's P/CF has been as high as 9.60 and as low as 6.58, with a median of 8.16.

These are just a handful of the figures considered in SeaWorld Entertainment's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SEAS is an impressive value stock right now.

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