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Is Vivendi (VIVHY) 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.

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

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 company to watch right now is Vivendi (VIVHY - Free Report) . VIVHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.54 right now. For comparison, its industry sports an average P/E of 15.80. VIVHY's Forward P/E has been as high as 16.77 and as low as 9.36, with a median of 11.02, all within the past year.

Investors should also note that VIVHY holds a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VIVHY's industry has an average PEG of 1.75 right now. Over the last 12 months, VIVHY's PEG has been as high as 0.96 and as low as 0.80, with a median of 0.87.

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


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