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Is Viad Corp (VVI) 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 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.

One company value investors might notice is Viad Corp (VVI - Free Report) . VVI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 19.73. This compares to its industry's average Forward P/E of 20.55. Over the last 12 months, VVI's Forward P/E has been as high as 60.33 and as low as 18.37, with a median of 25.92.

VVI is also sporting a PEG ratio of 1.32. 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. VVI's industry currently sports an average PEG of 1.79. Within the past year, VVI's PEG has been as high as 4.02 and as low as 1.23, with a median of 1.73.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VVI has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.98.

Finally, we should also recognize that VVI has a P/CF ratio of 10.98. 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. VVI's current P/CF looks attractive when compared to its industry's average P/CF of 24.81. Over the past 52 weeks, VVI's P/CF has been as high as 11.68 and as low as 4.34, with a median of 7.79.

Investors could also keep in mind WNS (WNS - Free Report) , an Business - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

WNS is trading at a forward earnings multiple of 12.78 at the moment, with a PEG ratio of 1.18. This compares to its industry's average P/E of 20.55 and average PEG ratio of 1.79.

WNS's Forward P/E has been as high as 24.06 and as low as 11.79, with a median of 14.94. During the same time period, its PEG ratio has been as high as 1.90, as low as 0.91, with a median of 1.26.

WNS also has a P/B ratio of 3.34 compared to its industry's price-to-book ratio of 2.95. Over the past year, its P/B ratio has been as high as 5.99, as low as 3.10, with a median of 4.12.

These are just a handful of the figures considered in Viad Corp and WNS'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 VVI and WNS is an impressive value stock right now.


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