Is Gray Media Inc. (GTN) Stock Undervalued Right Now?

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 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.

Gray Media Inc. (GTN) is a stock many investors are watching right now. GTN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Investors will also notice that GTN has 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 1.40. 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 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 0.15. This compares to its industry's average P/S of 0.4.

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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This article originally published on Zacks Investment Research (zacks.com).

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