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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
CenturyLink is a stock many investors are watching right now. CTL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.83, which compares to its industry's average of 13.03. CTL's Forward P/E has been as high as 14.19 and as low as 7.31, with a median of 9.32, all within the past year.
CTL is also sporting a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CTL's industry currently sports an average PEG of 2.72. Within the past year, CTL's PEG has been as high as 3.18 and as low as -9.46, with a median of 0.87.
Another notable valuation metric for CTL is its P/B ratio of 1.03. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.75. Over the past 12 months, CTL's P/B has been as high as 1.21 and as low as 0.63, with a median of 0.92.
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. CTL has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.97.
These are only a few of the key metrics included in CenturyLink'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, CTL looks like an impressive value stock at the moment.
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Should Value Investors Buy CenturyLink (CTL) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
CenturyLink is a stock many investors are watching right now. CTL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.83, which compares to its industry's average of 13.03. CTL's Forward P/E has been as high as 14.19 and as low as 7.31, with a median of 9.32, all within the past year.
CTL is also sporting a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CTL's industry currently sports an average PEG of 2.72. Within the past year, CTL's PEG has been as high as 3.18 and as low as -9.46, with a median of 0.87.
Another notable valuation metric for CTL is its P/B ratio of 1.03. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.75. Over the past 12 months, CTL's P/B has been as high as 1.21 and as low as 0.63, with a median of 0.92.
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. CTL has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.97.
These are only a few of the key metrics included in CenturyLink'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, CTL looks like an impressive value stock at the moment.