Is Entravision Communications (EVC) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
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.
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 stock to keep an eye on is Entravision Communications (EVC). EVC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.46, which compares to its industry's average of 24.37. Over the past year, EVC's Forward P/E has been as high as 19.21 and as low as 6.88, with a median of 15.16.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EVC has a P/S ratio of 0.84. This compares to its industry's average P/S of 0.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Entravision Communications is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EVC feels like a great value stock at the moment.
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Entravision Communications Corporation (EVC): Free Stock Analysis Report
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