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Is Rogers Communication (RCI) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Rogers Communication (RCI - Free Report) is a stock many investors are watching right now. RCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that RCI has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RCI's industry has an average PEG of 1.10 right now. Over the last 12 months, RCI's PEG has been as high as 2.47 and as low as 1.03, with a median of 1.75.

Finally, investors should note that RCI has a P/CF ratio of 6.79. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.55. Over the past 52 weeks, RCI's P/CF has been as high as 7.61 and as low as 5.70, with a median of 6.97.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Rogers Communication is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCI feels like a great value stock at the moment.


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