We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is The E.W. Scripps Company (SSP) a Great Stock for Value Investors?
Read MoreHide Full Article
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put The E.W. Scripps Company (SSP - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, The E.W. Scripps Company has a trailing twelve months PE ratio of 9.37, as you can see in the chart below:
Image Source: Zacks Investment Research
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 24.43. If we focus on the long-term PE trend, The E.W. Scripps Company’s current PE level puts it below its midpoint (which is 24.80) over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it can be a solid entry point.
Image Source: Zacks Investment Research
Further, the stock’s PE also compares favorably with the Zacks Consumer Discretionary sector’s trailing twelve months PE ratio, which stands at 69.53. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
Image Source: Zacks Investment Research
We should also point out that The E.W. Scripps Company has a forward PE ratio (price relative to this year’s earnings) of just 17.56, which is higher than the current level. So, it is fair to expect an increase in the company’s share price in the near term.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, The E.W. Scripps Company has a P/S ratio of about 0.79. This is a bit lower than the S&P 500 average, which comes in at 5.07x right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
Image Source: Zacks Investment Research
If anything, this suggests some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, The E.W. Scripps Company currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes The E.W. Scripps Company a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the P/CF ratio (another great indicator of value) comes in at 5.98, which is far better than the industry average of 7.47. Clearly, SSP is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though The E.W. Scripps Company might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of D and a Momentum Score of A. This gives SSP a Zacks VGM score — or its overarching fundamental grade — of B. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s current quarter consensus estimate didn’t witness any change in the past two months, while the full year estimate has surged by 94.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
The E.W. Scripps Company has just a Zacks Rank #3 (Hold), which indicates that while analysts have some apprehensions about the stock in the immediate future, the stock’s growth story might be good over the long term. Thus, we are looking for in-line performance from the company in the near term.
Bottom Line
The E.W. Scripps Company is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Further, a strong industry rank (among Top 46% of more than 250 industries) instills our confidence. In fact, over the past two years, the Zacks Broadcast Radio and Television industry has clearly underperformed the broader market, as you can see below:
Image Source: Zacks Investment Research
So, value investors might want to wait for analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Is The E.W. Scripps Company (SSP) a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put The E.W. Scripps Company (SSP - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, The E.W. Scripps Company has a trailing twelve months PE ratio of 9.37, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 24.43. If we focus on the long-term PE trend, The E.W. Scripps Company’s current PE level puts it below its midpoint (which is 24.80) over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it can be a solid entry point.
Further, the stock’s PE also compares favorably with the Zacks Consumer Discretionary sector’s trailing twelve months PE ratio, which stands at 69.53. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that The E.W. Scripps Company has a forward PE ratio (price relative to this year’s earnings) of just 17.56, which is higher than the current level. So, it is fair to expect an increase in the company’s share price in the near term.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, The E.W. Scripps Company has a P/S ratio of about 0.79. This is a bit lower than the S&P 500 average, which comes in at 5.07x right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past few years.
If anything, this suggests some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, The E.W. Scripps Company currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes The E.W. Scripps Company a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the P/CF ratio (another great indicator of value) comes in at 5.98, which is far better than the industry average of 7.47. Clearly, SSP is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though The E.W. Scripps Company might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of D and a Momentum Score of A. This gives SSP a Zacks VGM score — or its overarching fundamental grade — of B. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s current quarter consensus estimate didn’t witness any change in the past two months, while the full year estimate has surged by 94.6%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
E.W. Scripps Company The Price and Consensus
E.W. Scripps Company The price-consensus-chart | E.W. Scripps Company The Quote
The E.W. Scripps Company has just a Zacks Rank #3 (Hold), which indicates that while analysts have some apprehensions about the stock in the immediate future, the stock’s growth story might be good over the long term. Thus, we are looking for in-line performance from the company in the near term.
Bottom Line
The E.W. Scripps Company is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Further, a strong industry rank (among Top 46% of more than 250 industries) instills our confidence. In fact, over the past two years, the Zacks Broadcast Radio and Television industry has clearly underperformed the broader market, as you can see below:
So, value investors might want to wait for analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.