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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Gray Media Inc. (GTN) is a stock many investors are watching right now. GTN is currently sporting a Zacks Rank #1 (Strong 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 currently sports an average PEG of 1.32. Over the past 52 weeks, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GTN has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.36.
These are only a few of the key metrics included in Gray Media Inc.'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, GTN looks like an impressive value stock at the moment.
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Gray Media Inc. (GTN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).