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Should Value Investors Buy Frontline (FRO) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Frontline (FRO - Free Report) . FRO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that FRO holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FRO's industry currently sports an average PEG of 3.19. Within the past year, FRO's PEG has been as high as 2.84 and as low as 1.17, with a median of 1.72.

Finally, investors will want to recognize that FRO has a P/CF ratio of 5.74. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.95. Over the past 52 weeks, FRO's P/CF has been as high as 12.71 and as low as 4.81, with a median of 7.98.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Frontline is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FRO feels like a great value stock at the moment.


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