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Is Entravision Communications (EVC) 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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Entravision Communications (EVC - Free Report) . EVC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EVC has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.12.

Finally, our model also underscores that EVC has a P/CF ratio of 6.89. 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. EVC's P/CF compares to its industry's average P/CF of 24.53. Within the past 12 months, EVC's P/CF has been as high as 14.23 and as low as 1.91, with a median of 2.52.

These are only a few of the key metrics included in Entravision Communications's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EVC looks like an impressive value stock at the moment.




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