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Are Investors Undervaluing Salem Media Group (SALM) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Salem Media Group (SALM - Free Report) . SALM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.04. This compares to its industry's average Forward P/E of 21.20. Over the past 52 weeks, SALM's Forward P/E has been as high as 199.72 and as low as 3.32, with a median of 26.77.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SALM has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.87.

Value investors will likely look at more than just these metrics, but the above data helps show that Salem Media Group is likely undervalued currently. And when considering the strength of its earnings outlook, SALM sticks out at as one of the market's strongest value stocks.


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