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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Comcast (CMCSA - Free Report) . CMCSA 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 13.67, which compares to its industry's average of 18.08. Over the past year, CMCSA's Forward P/E has been as high as 14.59 and as low as 11.94, with a median of 13.33.
Investors should also note that CMCSA holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMCSA's industry currently sports an average PEG of 1.53. CMCSA's PEG has been as high as 1.19 and as low as 0.93, with a median of 1.11, all within the past year.
Another notable valuation metric for CMCSA is its P/B ratio of 2.61. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.06. CMCSA's P/B has been as high as 2.67 and as low as 2.04, with a median of 2.35, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMCSA has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.04.
Finally, investors will want to recognize that CMCSA has a P/CF ratio of 8.32. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.38. CMCSA's P/CF has been as high as 8.49 and as low as 4.40, with a median of 5.08, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Comcast is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMCSA feels like a great value stock at the moment.
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Is Comcast (CMCSA) Stock Undervalued Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Comcast (CMCSA - Free Report) . CMCSA 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 13.67, which compares to its industry's average of 18.08. Over the past year, CMCSA's Forward P/E has been as high as 14.59 and as low as 11.94, with a median of 13.33.
Investors should also note that CMCSA holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMCSA's industry currently sports an average PEG of 1.53. CMCSA's PEG has been as high as 1.19 and as low as 0.93, with a median of 1.11, all within the past year.
Another notable valuation metric for CMCSA is its P/B ratio of 2.61. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.06. CMCSA's P/B has been as high as 2.67 and as low as 2.04, with a median of 2.35, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMCSA has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.04.
Finally, investors will want to recognize that CMCSA has a P/CF ratio of 8.32. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.38. CMCSA's P/CF has been as high as 8.49 and as low as 4.40, with a median of 5.08, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Comcast is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMCSA feels like a great value stock at the moment.