Back to top

Image: Bigstock

Are Investors Undervaluing Fox (FOXA) Right Now?

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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Fox (FOXA - Free Report) . FOXA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.24. This compares to its industry's average Forward P/E of 25.79. Over the past year, FOXA's Forward P/E has been as high as 14.74 and as low as 10.80, with a median of 12.55.

Investors should also note that FOXA holds a PEG ratio of 1.41. 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. FOXA's industry currently sports an average PEG of 1.67. Over the past 52 weeks, FOXA's PEG has been as high as 2.07 and as low as 1.04, with a median of 1.24.

Another notable valuation metric for FOXA is its P/B ratio of 2.24. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FOXA's current P/B looks attractive when compared to its industry's average P/B of 6.33. Over the past year, FOXA's P/B has been as high as 2.31 and as low as 1.66, with a median of 2.03.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FOXA feels like a great value stock at the moment.


See More Zacks Research for These Tickers


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


Fox Corporation (FOXA) - free report >>

Published in