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Should Value Investors Buy Outfront Media (OUT) 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 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 stock to keep an eye on is Outfront Media (OUT - Free Report) . OUT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.74 right now. For comparison, its industry sports an average P/E of 15.65. Over the past year, OUT's Forward P/E has been as high as 11.69 and as low as 8.09, with a median of 9.31.

We also note that OUT holds a PEG ratio of 1.19. 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. OUT's industry has an average PEG of 2.81 right now. Within the past year, OUT's PEG has been as high as 1.83 and as low as 1.10, with a median of 1.55.

Finally, our model also underscores that OUT has a P/CF ratio of 9.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OUT's P/CF compares to its industry's average P/CF of 15.82. OUT's P/CF has been as high as 11.02 and as low as 7.71, with a median of 9.53, all within the past year.

These are just a handful of the figures considered in Outfront Media'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 OUT is an impressive value stock right now.


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