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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Comcast (CMCSA - Free Report) . CMCSA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.94, which compares to its industry's average of 11.40. Over the last 12 months, CMCSA's Forward P/E has been as high as 11.59 and as low as 7.48, with a median of 10.22.
CMCSA is also sporting a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CMCSA's industry currently sports an average PEG of 1.24. CMCSA's PEG has been as high as 1.23 and as low as 0.56, with a median of 0.81, all within the past year.
Another valuation metric that we should highlight is CMCSA's P/B ratio of 2.19. 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 2.24. CMCSA's P/B has been as high as 2.30 and as low as 1.44, with a median of 1.97, over the past year.
Finally, investors should note that CMCSA has a P/CF ratio of 9.10. 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 9.92. Within the past 12 months, CMCSA's P/CF has been as high as 9.56 and as low as 4.82, with a median of 8.46.
Value investors will likely look at more than just these metrics, but the above data helps show that Comcast is likely undervalued currently. And when considering the strength of its earnings outlook, CMCSA sticks out at as one of the market's strongest value stocks.
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Is Comcast (CMCSA) Stock Undervalued Right Now?
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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Comcast (CMCSA - Free Report) . CMCSA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.94, which compares to its industry's average of 11.40. Over the last 12 months, CMCSA's Forward P/E has been as high as 11.59 and as low as 7.48, with a median of 10.22.
CMCSA is also sporting a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CMCSA's industry currently sports an average PEG of 1.24. CMCSA's PEG has been as high as 1.23 and as low as 0.56, with a median of 0.81, all within the past year.
Another valuation metric that we should highlight is CMCSA's P/B ratio of 2.19. 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 2.24. CMCSA's P/B has been as high as 2.30 and as low as 1.44, with a median of 1.97, over the past year.
Finally, investors should note that CMCSA has a P/CF ratio of 9.10. 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 9.92. Within the past 12 months, CMCSA's P/CF has been as high as 9.56 and as low as 4.82, with a median of 8.46.
Value investors will likely look at more than just these metrics, but the above data helps show that Comcast is likely undervalued currently. And when considering the strength of its earnings outlook, CMCSA sticks out at as one of the market's strongest value stocks.