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Are Investors Undervaluing Gannett Co. (GCI) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Gannett Co. (GCI - Free Report) is a stock many investors are watching right now. GCI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 18.37. This compares to its industry's average Forward P/E of 21.66. 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 13.16.

Another notable valuation metric for GCI is its P/B ratio of 1.13. 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. GCI's current P/B looks attractive when compared to its industry's average P/B of 2.34. Within the past 52 weeks, GCI's P/B has been as high as 1.29 and as low as 0.84, with a median of 1.02.

Finally, we should also recognize that GCI has a P/CF ratio of 7.40. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.47. Within the past 12 months, GCI's P/CF has been as high as 7.85 and as low as 5.53, with a median of 6.66.

These are just a handful of the figures considered in Gannett Co.'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 GCI is an impressive value stock right now.


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