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Is Gannett Co. (GCI) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 Gannett Co. (GCI - Free Report) . GCI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 18.39. This compares to its industry's average Forward P/E of 21.71. Over the past year, GCI's Forward P/E has been as high as 19.69 and as low as 7.69, with a median of 13.51.

We should also highlight that GCI has a P/B ratio of 1.17. 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 solid versus its industry's average P/B of 2.39. Over the past 12 months, GCI's P/B has been as high as 1.29 and as low as 0.84, with a median of 1.03.

Finally, we should also recognize that GCI has a P/CF ratio of 7.71. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.74. Within the past 12 months, GCI's P/CF has been as high as 7.85 and as low as 5.53, with a median of 6.76.

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


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