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Should Value Investors Buy Lions Gate Entertainment (LGF.A) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Lions Gate Entertainment (LGF.A - Free Report) is a stock many investors are watching right now. LGF.A is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.56, while its industry has an average P/E of 24.90. LGF.A's Forward P/E has been as high as 18.75 and as low as 7.83, with a median of 12.34, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LGF.A has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.51.

These are just a handful of the figures considered in Lions Gate Entertainment's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LGF.A is an impressive value stock right now.


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