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Should Value Investors Buy Fox (FOX) Stock?

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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.

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 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.

One company to watch right now is Fox (FOX - Free Report) . FOX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.76, which compares to its industry's average of 30.72. Over the past 52 weeks, FOX's Forward P/E has been as high as 11.90 and as low as 8.17, with a median of 10.07.

FOX is also sporting a PEG ratio of 1.66. 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. FOX's industry currently sports an average PEG of 1.97. FOX's PEG has been as high as 7.31 and as low as 1.57, with a median of 1.99, all within the past year.

Investors should also recognize that FOX has a P/B ratio of 1.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FOX's current P/B looks attractive when compared to its industry's average P/B of 4.65. Over the past year, FOX's P/B has been as high as 1.80 and as low as 1.20, with a median of 1.37.

Finally, investors will want to recognize that FOX has a P/CF ratio of 8.85. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.58. Within the past 12 months, FOX's P/CF has been as high as 11.57 and as low as 6.68, with a median of 8.81.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FOX feels like a great value stock at the moment.


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