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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 AMC Networks (AMCX). AMCX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors will also notice that AMCX has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMCX's industry currently sports an average PEG of 1.46. AMCX's PEG has been as high as 1.37 and as low as 0.63, with a median of 0.88, all within the past year.
We should also highlight that AMCX has a P/B ratio of 12.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 34.61. Over the past year, AMCX's P/B has been as high as 19.70 and as low as 10.03, with a median of 12.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMCX has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.28.
These are only a few of the key metrics included in AMC Networks'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, AMCX looks like an impressive value stock at the moment.
AMC Networks Inc. (AMCX): Free Stock Analysis Report
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