Is Century Casinos (CNTY) a Great Value Stock Right Now?
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.
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.
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.
Century Casinos (CNTY) is a stock many investors are watching right now. CNTY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
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. CNTY has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.64.
Finally, our model also underscores that CNTY has a P/CF ratio of 4.26. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.03. Within the past 12 months, CNTY's P/CF has been as high as 22.38 and as low as 3.75, with a median of 6.85.
MGM Resorts International (MGM) may be another strong Gaming stock to add to your shortlist. MGM is a # 2 (Buy) stock with a Value grade of A.
MGM Resorts International also has a P/B ratio of 1.36 compared to its industry's price-to-book ratio of 4.65. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.17, with a median of 1.79.
These are only a few of the key metrics included in Century Casinos and MGM Resorts International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNTY and MGM look like an impressive value stock at the moment.
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Century Casinos, Inc. (CNTY) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
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