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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice 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 metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GTN's PEG compares to its industry's average PEG of 1.11. 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 use the P/S ratio. The P/S ratio 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. GTN has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Gray Media Inc. is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTN feels like a great 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).