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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.03, which compares to its industry's average of 18.77. 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 13.54.
Investors should also note that CMCSA holds a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMCSA's PEG compares to its industry's average PEG of 1.59. Over the last 12 months, CMCSA's PEG has been as high as 1.20 and as low as 0.93, with a median of 1.11.
We should also highlight that CMCSA has a P/B ratio of 2.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CMCSA's current P/B looks attractive when compared to its industry's average P/B of 3.16. CMCSA's P/B has been as high as 2.70 and as low as 2.08, with a median of 2.38, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.94. This compares to its industry's average P/S of 2.35.
Finally, we should also recognize that CMCSA has a P/CF ratio of 8.75. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.88. Within the past 12 months, CMCSA's P/CF has been as high as 8.79 and as low as 4.45, with a median of 7.37.
These are just a handful of the figures considered in Comcast'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 CMCSA is an impressive value stock right now.
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Is Comcast (CMCSA) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.03, which compares to its industry's average of 18.77. 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 13.54.
Investors should also note that CMCSA holds a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMCSA's PEG compares to its industry's average PEG of 1.59. Over the last 12 months, CMCSA's PEG has been as high as 1.20 and as low as 0.93, with a median of 1.11.
We should also highlight that CMCSA has a P/B ratio of 2.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CMCSA's current P/B looks attractive when compared to its industry's average P/B of 3.16. CMCSA's P/B has been as high as 2.70 and as low as 2.08, with a median of 2.38, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.94. This compares to its industry's average P/S of 2.35.
Finally, we should also recognize that CMCSA has a P/CF ratio of 8.75. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.88. Within the past 12 months, CMCSA's P/CF has been as high as 8.79 and as low as 4.45, with a median of 7.37.
These are just a handful of the figures considered in Comcast'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 CMCSA is an impressive value stock right now.