Advertisement
Australia markets open in 8 hours 16 minutes
  • ALL ORDS

    8,243.30
    -19.10 (-0.23%)
     
  • AUD/USD

    0.6726
    -0.0038 (-0.57%)
     
  • ASX 200

    7,999.30
    -18.30 (-0.23%)
     
  • OIL

    80.87
    -1.04 (-1.27%)
     
  • GOLD

    2,465.70
    +36.80 (+1.52%)
     
  • Bitcoin AUD

    96,151.68
    +2,492.51 (+2.66%)
     
  • CMC Crypto 200

    1,340.42
    -0.55 (-0.04%)
     

Are Investors Undervaluing Sinclair Broadcast Group (SBGI) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Sinclair Broadcast Group (SBGI). SBGI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

ADVERTISEMENT

Another notable valuation metric for SBGI is its P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.89. SBGI's P/B has been as high as 2.87 and as low as 1.29, with a median of 2.02, over the past year.

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. SBGI has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.52.

If you're looking for another solid Broadcast Radio and Television value stock, take a look at Grupo Televisa (TV). TV is a # 2 (Buy) stock with a Value score of A.

Shares of Grupo Televisa are currently trading at a forward earnings multiple of 19.28 and a PEG ratio of 2.76 compared to its industry's P/E and PEG ratios of 19.70 and 2.61, respectively.

TV's price-to-earnings ratio has been as high as 57.61 and as low as 14.30, with a median of 34.15, while its PEG ratio has been as high as 5.89 and as low as 1.67, with a median of 2.84, all within the past year.

Grupo Televisa also has a P/B ratio of 0.35 compared to its industry's price-to-book ratio of 3.89. Over the past year, its P/B ratio has been as high as 0.79, as low as 0.33, with a median of 0.42.

These are just a handful of the figures considered in Sinclair Broadcast Group and Grupo Televisa'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 SBGI and TV is an impressive value stock right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sinclair Broadcast Group, Inc. (SBGI) : Free Stock Analysis Report

Grupo Televisa S.A. (TV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research