Is Nexstar Media Group (NXST) Stock Undervalued 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 latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Nexstar Media Group (NXST) is a stock many investors are watching right now. NXST is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.65, while its industry has an average P/E of 13.17. Over the past year, NXST's Forward P/E has been as high as 8.69 and as low as 5.60, with a median of 7.04.
Investors should also note that NXST holds a PEG ratio of 0.66. 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. NXST's industry currently sports an average PEG of 1.17. Over the past 52 weeks, NXST's PEG has been as high as 0.87 and as low as 0.56, with a median of 0.70.
Finally, investors will want to recognize that NXST has a P/CF ratio of 4.51. 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. NXST's P/CF compares to its industry's average P/CF of 9.49. Within the past 12 months, NXST's P/CF has been as high as 5.63 and as low as 3.94, with a median of 4.57.
These are just a handful of the figures considered in Nexstar Media Group'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 NXST is an impressive value stock right now.
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