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Should Value Investors Buy AMC Networks (AMCX) Stock?
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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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
AMC Networks (AMCX - Free Report) is a stock many investors are watching right now. AMCX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.53, which compares to its industry's average of 22.18. Over the past year, AMCX's Forward P/E has been as high as 8.03 and as low as 5.90, with a median of 6.99.
Investors should also note that AMCX holds a PEG ratio of 1.03. 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. AMCX's industry has an average PEG of 1.44 right now. Over the last 12 months, AMCX's PEG has been as high as 1.37 and as low as 0.63, with a median of 0.89.
Another valuation metric that we should highlight is AMCX's P/B ratio of 12.16. 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 32.53. Within the past 52 weeks, AMCX's P/B has been as high as 19.92 and as low as 10.03, with a median of 13.14.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMCX has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.26.
These are just a handful of the figures considered in AMC Networks's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMCX is an impressive value stock right now.
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Should Value Investors Buy AMC Networks (AMCX) Stock?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
AMC Networks (AMCX - Free Report) is a stock many investors are watching right now. AMCX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.53, which compares to its industry's average of 22.18. Over the past year, AMCX's Forward P/E has been as high as 8.03 and as low as 5.90, with a median of 6.99.
Investors should also note that AMCX holds a PEG ratio of 1.03. 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. AMCX's industry has an average PEG of 1.44 right now. Over the last 12 months, AMCX's PEG has been as high as 1.37 and as low as 0.63, with a median of 0.89.
Another valuation metric that we should highlight is AMCX's P/B ratio of 12.16. 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 32.53. Within the past 52 weeks, AMCX's P/B has been as high as 19.92 and as low as 10.03, with a median of 13.14.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMCX has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.26.
These are just a handful of the figures considered in AMC Networks's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMCX is an impressive value stock right now.