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Is Stagwell Inc. (STGW) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Stagwell Inc. (STGW - Free Report) . STGW is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.71 right now. For comparison, its industry sports an average P/E of 9.67. Over the past year, STGW's Forward P/E has been as high as 9.95 and as low as 4.61, with a median of 6.88.
Another valuation metric that we should highlight is STGW's P/B ratio of 1.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.25. STGW's P/B has been as high as 2.87 and as low as 1.42, with a median of 2.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STGW has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that STGW has a P/CF ratio of 7.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. STGW's current P/CF looks attractive when compared to its industry's average P/CF of 10.14. STGW's P/CF has been as high as 8.62 and as low as 3.86, with a median of 5.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stagwell Inc. is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STGW feels like a great value stock at the moment.
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Is Stagwell Inc. (STGW) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Stagwell Inc. (STGW - Free Report) . STGW is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.71 right now. For comparison, its industry sports an average P/E of 9.67. Over the past year, STGW's Forward P/E has been as high as 9.95 and as low as 4.61, with a median of 6.88.
Another valuation metric that we should highlight is STGW's P/B ratio of 1.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.25. STGW's P/B has been as high as 2.87 and as low as 1.42, with a median of 2.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STGW has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that STGW has a P/CF ratio of 7.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. STGW's current P/CF looks attractive when compared to its industry's average P/CF of 10.14. STGW's P/CF has been as high as 8.62 and as low as 3.86, with a median of 5.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Stagwell Inc. is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STGW feels like a great value stock at the moment.