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Should Value Investors Buy Fox (FOX) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Fox (FOX - Free Report) . FOX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.55, which compares to its industry's average of 30.57. Over the past 52 weeks, FOX's Forward P/E has been as high as 11.79 and as low as 8.17, with a median of 10.05.

Investors will also notice that FOX has a PEG ratio of 1.63. 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. FOX's industry currently sports an average PEG of 1.96. Within the past year, FOX's PEG has been as high as 7.31 and as low as 1.57, with a median of 2.

Another valuation metric that we should highlight is FOX's P/B ratio of 1.75. 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. FOX's current P/B looks attractive when compared to its industry's average P/B of 4.39. Over the past 12 months, FOX's P/B has been as high as 1.78 and as low as 1.20, with a median of 1.36.

Finally, investors should note that FOX has a P/CF ratio of 8.67. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.70. Over the past year, FOX's P/CF has been as high as 11.57 and as low as 6.68, with a median of 8.90.

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


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