That’s a question that Zacks Equity Research asks, and it’s completed its analysis of a broadcast television station ownership group poised to differentiate itself from its peers through the launch of a massive production studio in the Atlanta area.
With Assembly Atlanta nearing full occupancy, Gray Media shared on its Q4 and full-year 2024 earnings call that it is looking forward to strong revenue from this non-traditional revenue stream.
Add the forecasted broadcast data revenue potential from the full realization of ATSC 3.0 technology, and Gray Media could be in the drivers’ seat in the near future when it comes to profiteering from its assets.
Or, will it? Zacks sees “many investors” watching “GTN” right now. It sports a “Buy” rating from Zacks, and has an “A” grade for value.
As of 11:41am Eastern, Gray shares were trading at $5.11, down 1.5% from Thursday’s close. Gray stock is down 14.4% from one year ago, but is up by a healthy 34.5% since one month ago — great news for the company and a sign investors believe in CEO Hilton Howell Jr.‘s game plan for long-term growth.
Zacks’ analysis shows “GTN” holds a price-to-earnings ratio of 10.62, while its industry has an average P/E of 27.99. Further, Gray’s Forward P/E has been as high as 54.90 and as low as -64.84, with a median of 2.41, all within the past year.
Investors may also notice that GTN has a price/earnings to growth ratio of 1.06. The industry currently sports an average PEG of 1.43. Over the past 52 weeks, GTN’s PEG has been as high as 5.49 and as low as -6.48, with a median of 0.24, Zacks adds.
Value investors also frequently use the Price-to-Sales ratio. This metric is found by dividing a stock’s price with the company’s revenue and is popular for some because sales are harder to manipulate on an income statement. Gray has a P/S ratio of 0.14. This compares to its industry’s average P/S of 0.28.
What does this mean for the investor eyeing Gray? Buy it now, Zacks advises. “Gray Media Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ‘GTN’ feels like a great value stock at the moment.”
