Is Gray Television (GTN) A Great Value Stock Right Now?

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Gray Television (GTN). GTN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors will also notice that GTN has a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GTN's industry currently sports an average PEG of 2.21. Over the last 12 months, GTN's PEG has been as high as 2.26 and as low as 0.60, with a median of 0.80.

Finally, investors will want to recognize that GTN has a P/CF ratio of 5.48. 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. GTN's P/CF compares to its industry's average P/CF of 20.89. Over the past year, GTN's P/CF has been as high as 7.67 and as low as 3.79, with a median of 5.18.

Value investors will likely look at more than just these metrics, but the above data helps show that Gray Television is likely undervalued currently. And when considering the strength of its earnings outlook, GTN sticks out at as one of the market's strongest value stocks.