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Are Investors Undervaluing National CineMedia (NCMI) Right Now?

By Zacks Investment ResearchStock MarketsMar 10, 2020 11:50PM ET
www.investing.com/analysis/are-investors-undervaluing-national-cinemedia-ncmi-right-now-200515158
Are Investors Undervaluing National CineMedia (NCMI) Right Now?
By Zacks Investment Research   |  Mar 10, 2020 11:50PM ET
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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 to watch right now is National CineMedia (NCMI). NCMI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.42, while its industry has an average P/E of 12.68. Over the past 52 weeks, NCMI's Forward P/E has been as high as 20.11 and as low as 11.42, with a median of 16.72.

Finally, investors will want to recognize that NCMI has a P/CF ratio of 5.42. 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. NCMI's current P/CF looks attractive when compared to its industry's average P/CF of 15.93. Over the past 52 weeks, NCMI's P/CF has been as high as 9.28 and as low as 5.42, with a median of 7.46.

These are just a handful of the figures considered in National CineMedia'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 NCMI is an impressive value stock right now.



National CineMedia, Inc. (NCMI): Free Stock Analysis Report

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Are Investors Undervaluing National CineMedia (NCMI) Right Now?
 

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Are Investors Undervaluing National CineMedia (NCMI) Right Now?

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