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Are Investors Undervaluing Stagwell Inc. (STGW) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on 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 9.87, which compares to its industry's average of 10.46. Over the past 52 weeks, STGW's Forward P/E has been as high as 22.77 and as low as 7.42, with a median of 20.14.

Finally, our model also underscores that STGW has a P/CF ratio of 5.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.26. Within the past 12 months, STGW's P/CF has been as high as 17.24 and as low as 4.82, with a median of 7.80.

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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