Are Investors Undervaluing Fox (FOX) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Fox (FOX). FOX is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.3, while its industry has an average P/E of 28.58. Over the last 12 months, FOX's Forward P/E has been as high as 13.89 and as low as 10.11, with a median of 11.60.

Investors should also note that FOX holds a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FOX's industry currently sports an average PEG of 1.40. Within the past year, FOX's PEG has been as high as 2.17 and as low as 1.08, with a median of 1.42.

Another valuation metric that we should highlight is FOX's P/B ratio of 2.02. 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 5.74. Within the past 52 weeks, FOX's P/B has been as high as 2.12 and as low as 1.53, with a median of 1.88.

Finally, investors should note that FOX has a P/CF ratio of 9.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.44. Over the past 52 weeks, FOX's P/CF has been as high as 10.82 and as low as 7.60, with a median of 9.03.

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 FOX is an impressive value stock right now.

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

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