While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Six Flags Entertainment Corporation (FUN). FUN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.95 right now. For comparison, its industry sports an average P/E of 19.83. Over the past year, FUN’s Forward P/E has been as high as 57.69 and as low as 10.82, with a median of 12.48.
We should also highlight that FUN has a P/B ratio of 1.95. The P/B ratio pits a stock’s market value against 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 4.48. Over the past year, FUN’s P/B has been as high as 2.13 and as low as -4.33, with a median of -3.07.
Finally, our model also underscores that FUN has a P/CF ratio of 14.93. 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. FUN’s current P/CF looks attractive when compared to its industry’s average P/CF of 16.64. Within the past 12 months, FUN’s P/CF has been as high as 16.29 and as low as 6.83, with a median of 7.92.
These are only a few of the key metrics included in Six Flags Entertainment Corporation’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUN looks like an impressive value stock at the moment.
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Six Flags Entertainment Corporation (FUN) : Free Stock Analysis Report
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
