Back to top

Image: Bigstock

Are Investors Undervaluing Fox (FOXA) Right Now?

Read MoreHide Full Article

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Fox (FOXA - Free Report) . FOXA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.29. This compares to its industry's average Forward P/E of 28.52. Over the last 12 months, FOXA's Forward P/E has been as high as 12.95 and as low as 7.82, with a median of 9.98.

FOXA is also sporting a PEG ratio of 1.24. 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. FOXA's industry currently sports an average PEG of 2.16. Within the past year, FOXA's PEG has been as high as 2.07 and as low as 0.34, with a median of 1.21.

Another notable valuation metric for FOXA is its P/B ratio of 1.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FOXA's current P/B looks attractive when compared to its industry's average P/B of 4.80. Over the past 12 months, FOXA's P/B has been as high as 2.01 and as low as 1.31, with a median of 1.58.

Finally, our model also underscores that FOXA has a P/CF ratio of 9.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.08. FOXA's P/CF has been as high as 12.45 and as low as 7.27, with a median of 9.32, all within the past year.

These are just a handful of the figures considered in Fox's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FOXA is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fox Corporation (FOXA) - free report >>

Published in