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Is Stagwell Inc. (STGW) Stock Undervalued Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Stagwell Inc. (STGW - Free Report) . STGW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.22, which compares to its industry's average of 10.49. STGW's Forward P/E has been as high as 9.11 and as low as 3.85, with a median of 6.13, all within the past year.

Another valuation metric that we should highlight is STGW's P/B ratio of 1.99. The P/B ratio is used to compare a stock's market value with 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 5.24. Within the past 52 weeks, STGW's P/B has been as high as 3.12 and as low as 1.43, with a median of 1.98.

Finally, investors will want to recognize that STGW has a P/CF ratio of 4.60. 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. STGW's P/CF compares to its industry's average P/CF of 11.38. Over the past 52 weeks, STGW's P/CF has been as high as 17.65 and as low as 3.91, with a median of 7.31.

These are only a few of the key metrics included in Stagwell Inc.'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, STGW looks like an impressive value stock at the moment.


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