Back to top

Image: Bigstock

Should Value Investors Buy Fox (FOX) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Fox (FOX - Free Report) . FOX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.3 right now. For comparison, its industry sports an average P/E of 29.85. Over the past 52 weeks, FOX's Forward P/E has been as high as 13.89 and as low as 10.11, with a median of 11.60.

FOX is also sporting a PEG ratio of 1.31. 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. FOX's PEG compares to its industry's average PEG of 1.37. FOX's PEG has been as high as 2.17 and as low as 1.08, with a median of 1.42, all within the past year.

Investors should also recognize that FOX has a P/B ratio of 2.02. 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. This stock's P/B looks solid versus its industry's average P/B of 5.84. Over the past 12 months, FOX's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.88.

Finally, investors should note that FOX has a P/CF ratio of 9.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FOX's P/CF compares to its industry's average P/CF of 11.65. Over the past year, FOX's P/CF has been as high as 10.82 and as low as 7.60, with a median of 9.03.

Investors could also keep in mind Fox (FOXA - Free Report) , another Broadcast Radio and Television stock with a Zacks Rank of #2 (Buy) and Value grade of A.

Shares of Fox currently hold a Forward P/E ratio of 14.24, and its PEG ratio is 1.41. In comparison, its industry sports average P/E and PEG ratios of 29.85 and 1.37.

FOXA's price-to-earnings ratio has been as high as 14.74 and as low as 10.80, with a median of 12.55, while its PEG ratio has been as high as 2.07 and as low as 1.04, with a median of 1.24, all within the past year.

Fox sports a P/B ratio of 2.24 as well; this compares to its industry's price-to-book ratio of 5.84. In the past 52 weeks, FOXA's P/B has been as high as 2.31, as low as 1.66, with a median of 2.03.

Value investors will likely look at more than just these metrics, but the above data helps show that Fox and Fox are likely undervalued currently. And when considering the strength of its earnings outlook, FOX and FOXA sticks out as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


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


Fox Corporation (FOX) - free report >>

Fox Corporation (FOXA) - free report >>

Published in