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Is Entravision Communications (EVC) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Entravision Communications (EVC - Free Report) . EVC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 16.65 right now. For comparison, its industry sports an average P/E of 19.72. Over the past year, EVC's Forward P/E has been as high as 55.55 and as low as 12.82, with a median of 17.95.

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. EVC has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.03.

Finally, we should also recognize that EVC has a P/CF ratio of 19.45. 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. EVC's current P/CF looks attractive when compared to its industry's average P/CF of 22.86. EVC's P/CF has been as high as 26 and as low as 6.95, with a median of 11.46, all within the past year.

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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