Back to top

Image: Bigstock

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

Read MoreHide Full Article

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.

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.

Gannett Co. (GCI - Free Report) is a stock many investors are watching right now. GCI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 18.08, which compares to its industry's average of 22.88. GCI's Forward P/E has been as high as 19.69 and as low as 7.69, with a median of 14.77, all within the past year.

Another notable valuation metric for GCI is its P/B ratio of 1.15. 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 2.53. 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 1.08.

Finally, we should also recognize that GCI has a P/CF ratio of 7.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.55. 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 6.93.

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