That’s a question asked today by Zacks Equity Research.
What’s the conclusion? It’s a highly positive one for the broadcast media company that owns broadcast TV stations, NewsNation and WGN Radio in Chicago.
“One company value investors might notice is Nexstar Media Group,” Zacks says.
Trading as NXST, shares were up by 1.4% to $168.19 just before Noon Eastern on May 26.
It’s currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Furthermore, the company’s stock holds a P/E ratio of 6.61, while its industry has an average P/E of 12.66. NXST’s Forward P/E has been as high as 8.69 and as low as 5.60, with a median of 7.08, all within the past year.
What does this mean for the value investor? So far so good.
That’s because Nexstar also holds a PEG ratio of 0.66. This metric, Zacks explains, is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Nexstar’s industry has an average PEG of 1.15 right now. Nexstar’s PEG has been as high as 0.87 and as low as 0.56, with a median of 0.71, all within the past year, Zacks says.
Lastly, Nexstar has a P/CF ratio of 4.54. “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,” Zacks says. “Nexstar’s current P/CF looks attractive when compared to its industry’s average P/CF of 10.04. Over the past 52 weeks, NXST’s P/CF has been as high as 5.63 and as low as 3.94, with a median of 4.57.”
When considering the strength of its earnings outlook, Zacks concludes, “Nexstar sticks out at as one of the market’s strongest value stocks.”
