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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Gray Media Inc. (GTN). GTN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
GTN is also sporting a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GTN's industry has an average PEG of 1.10 right now. Over the last 12 months, GTN's PEG has been as high as 5.49 and as low as -6.48, with a median of 0.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GTN has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Gray Media Inc. is likely undervalued currently. And when considering the strength of its earnings outlook, GTN sticks out as one of the market's strongest value stocks.
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Gray Media Inc. (GTN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).