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Should Value Investors Buy Bragg Gaming Group Inc. (BRAG) Stock?

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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.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Bragg Gaming Group Inc. (BRAG - Free Report) . BRAG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 26.29, while its industry has an average P/E of 31.01. Over the past 52 weeks, BRAG's Forward P/E has been as high as 5,713.04 and as low as -8,349.39, with a median of 31.02.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BRAG has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.37.

Finally, investors should note that BRAG has a P/CF ratio of 13.12. 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 30.02. Over the past 52 weeks, BRAG's P/CF has been as high as 57.05 and as low as 8.36, with a median of 14.96.

Another great Gaming stock you could consider is MGM Resorts International (MGM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

MGM Resorts International is trading at a forward earnings multiple of 13.74 at the moment, with a PEG ratio of 8.41. This compares to its industry's average P/E of 31.01 and average PEG ratio of 4.05.

Over the last 12 months, MGM's P/E has been as high as 270.61, as low as 13.69, with a median of 58.05, and its PEG ratio has been as high as 14.32, as low as 1.48, with a median of 7.86.

MGM Resorts International also has a P/B ratio of 2.76 compared to its industry's price-to-book ratio of 8.17. Over the past year, its P/B ratio has been as high as 3.83, as low as 1.77, with a median of 2.99.

These are only a few of the key metrics included in Bragg Gaming Group Inc. and MGM Resorts International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BRAG and MGM look like an impressive value stock at the moment.


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