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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
E.W. Scripps (SSP - Free Report) is a stock many investors are watching right now. SSP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SSP has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.57.
Finally, investors will want to recognize that SSP has a P/CF ratio of 11.78. 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. SSP's current P/CF looks attractive when compared to its industry's average P/CF of 20.89. Over the past 52 weeks, SSP's P/CF has been as high as 20.71 and as low as 8.36, with a median of 14.64.
Value investors will likely look at more than just these metrics, but the above data helps show that E.W. Scripps is likely undervalued currently. And when considering the strength of its earnings outlook, SSP sticks out at as one of the market's strongest value stocks.