Back to top

Image: Bigstock

Is Vector Group (VGR) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Vector Group (VGR - Free Report) is a stock many investors are watching right now. VGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VGR has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.72.

Finally, our model also underscores that VGR has a P/CF ratio of 15.75. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.71. Over the past 52 weeks, VGR's P/CF has been as high as 24.37 and as low as 12.82, with a median of 18.54.

Value investors will likely look at more than just these metrics, but the above data helps show that Vector Group is likely undervalued currently. And when considering the strength of its earnings outlook, VGR sticks out at as one of the market's strongest value stocks.


In-Depth Zacks Research for the Tickers Above


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


Vector Group Ltd. (VGR) - free report >>

Published in