Back to top

Image: Bigstock

Is Gannett Co. (GCI) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

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.

One stock to keep an eye on is Gannett Co. (GCI - Free Report) . GCI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 18.92 right now. For comparison, its industry sports an average P/E of 23.17. Over the last 12 months, GCI's Forward P/E has been as high as 19.69 and as low as 7.69, with a median of 14.63.

Investors should also recognize that GCI has a P/B ratio of 1.21. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.56. Over the past year, GCI's P/B has been as high as 1.29 and as low as 0.84, with a median of 1.06.

Finally, our model also underscores that GCI has a P/CF ratio of 7.90. 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. GCI's current P/CF looks attractive when compared to its industry's average P/CF of 14.71. Over the past year, GCI's P/CF has been as high as 7.90 and as low as 5.53, with a median of 6.90.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gannett Co., Inc. (GCI) - free report >>

Published in