Should Value Investors Buy Stagwell Inc. (STGW) Stock?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.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 company value investors might notice is Stagwell Inc. (STGW). STGW is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.71, which compares to its industry's average of 8.96. Over the last 12 months, STGW's Forward P/E has been as high as 9.95 and as low as 4.61, with a median of 6.88. Another valuation metric that we should highlight is STGW's P/B ratio of 1.71. 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. STGW's current P/B looks attractive when compared to its industry's average P/B of 4.02. STGW's P/B has been as high as 2.87 and as low as 1.42, with a median of 2.06, over the past year.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STGW has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.47.Finally, we should also recognize that STGW has a P/CF ratio of 7.56. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.61. Over the past 52 weeks, STGW's P/CF has been as high as 8.62 and as low as 3.86, with a median of 5.60.Value investors will likely look at more than just these metrics, but the above data helps show that Stagwell Inc. is likely undervalued currently. And when considering the strength of its earnings outlook, STGW sticks out as one of the market's strongest value stocks.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 Stagwell Inc. (STGW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks