Yahoo Finance Are Investors Undervaluing Lions Gate Entertainment (LGF.A) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Lions Gate Entertainment (LGF.A). LGF.A is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.78, while its industry has an average P/E of 23.45. LGF.A's Forward P/E has been as high as 26.10 and as low as 9.98, with a median of 14.30, all within the past year.
We also note that LGF.A holds a PEG ratio of 1.13. 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. LGF.A's PEG compares to its industry's average PEG of 1.45. Within the past year, LGF.A's PEG has been as high as 1.74 and as low as 0.91, with a median of 1.16.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LGF.A has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.51.
These are only a few of the key metrics included in Lions Gate Entertainment's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LGF.A looks like an impressive value stock at the moment.
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Lions Gate Entertainment Corp. (LGF.A) : Free Stock Analysis Report
