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Is CenturyLink (LUMN) a Great Value Stock Right Now?
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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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is CenturyLink (LUMN - Free Report) . LUMN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.39. This compares to its industry's average Forward P/E of 12.60. Over the last 12 months, LUMN's Forward P/E has been as high as 10.82 and as low as 5.88, with a median of 8.07.
Investors should also recognize that LUMN has a P/B ratio of 0.82. 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 solid versus its industry's average P/B of 1.69. Within the past 52 weeks, LUMN's P/B has been as high as 1.23 and as low as 0.70, with a median of 0.89.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LUMN has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.19.
Finally, our model also underscores that LUMN has a P/CF ratio of 1.81. 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. LUMN's current P/CF looks attractive when compared to its industry's average P/CF of 5.58. Within the past 12 months, LUMN's P/CF has been as high as 2.07 and as low as -37.15, with a median of 1.64.
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, LUMN looks like an impressive value stock at the moment.
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Is CenturyLink (LUMN) a Great Value Stock Right Now?
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is CenturyLink (LUMN - Free Report) . LUMN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.39. This compares to its industry's average Forward P/E of 12.60. Over the last 12 months, LUMN's Forward P/E has been as high as 10.82 and as low as 5.88, with a median of 8.07.
Investors should also recognize that LUMN has a P/B ratio of 0.82. 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 solid versus its industry's average P/B of 1.69. Within the past 52 weeks, LUMN's P/B has been as high as 1.23 and as low as 0.70, with a median of 0.89.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LUMN has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.19.
Finally, our model also underscores that LUMN has a P/CF ratio of 1.81. 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. LUMN's current P/CF looks attractive when compared to its industry's average P/CF of 5.58. Within the past 12 months, LUMN's P/CF has been as high as 2.07 and as low as -37.15, with a median of 1.64.
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, LUMN looks like an impressive value stock at the moment.