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Is Gannett Co. (GCI) Stock Undervalued Right Now?

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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 value investors might notice is Gannett Co. (GCI - Free Report) . GCI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.21. This compares to its industry's average Forward P/E of 21.08. Over the past year, GCI's Forward P/E has been as high as 19.69 and as low as 7.69, with a median of 13.01.

Another notable valuation metric for GCI is its P/B ratio of 1.08. The P/B is a method of comparing a stock's market value to 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 2.27. Over the past year, GCI's P/B has been as high as 1.29 and as low as 0.84, with a median of 1.02.

Finally, our model also underscores that GCI has a P/CF ratio of 6.81. 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. GCI's current P/CF looks attractive when compared to its industry's average P/CF of 13.04. Over the past 52 weeks, GCI's P/CF has been as high as 7.85 and as low as 5.47, with a median of 6.49.

These are only a few of the key metrics included in Gannett Co.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GCI looks like an impressive value stock at the moment.


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