Should Value Investors Buy Fox (FOXA) Stock?

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.

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.

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.

Fox (FOXA) is a stock many investors are watching right now. FOXA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.24, while its industry has an average P/E of 25.01. Over the past year, FOXA's Forward P/E has been as high as 14.74 and as low as 10.80, with a median of 12.55.

Investors will also notice that FOXA has a PEG ratio of 1.41. 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. FOXA's PEG compares to its industry's average PEG of 1.62. Over the last 12 months, FOXA's PEG has been as high as 2.07 and as low as 1.04, with a median of 1.24.

We should also highlight that FOXA has a P/B ratio of 2.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.20. FOXA's P/B has been as high as 2.31 and as low as 1.66, with a median of 2.03, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Fox is likely undervalued currently. And when considering the strength of its earnings outlook, FOXA sticks out as one of the market's strongest value stocks.

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

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