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Is Quad/Graphics (QUAD) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Quad/Graphics (QUAD - Free Report) . QUAD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.45, which compares to its industry's average of 20.04. Over the past 52 weeks, QUAD's Forward P/E has been as high as 14.80 and as low as 10.83, with a median of 12.23.

We should also highlight that QUAD has a P/B ratio of 2.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.83. Over the past 12 months, QUAD's P/B has been as high as 3.07 and as low as 1.71, with a median of 2.34.

Finally, investors will want to recognize that QUAD has a P/CF ratio of 3.52. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.05. QUAD's P/CF has been as high as 4.71 and as low as 2.96, with a median of 3.58, all within the past year.

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


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