National cinemedia is ncmi a good stock for value investors – august 22, 2017 – zacks.com dollar pound exchange rate forecast

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Value investing is easily one of the most popular ways to find great stocks in any market environment us dollar rate today in indian rupees. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?

One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put National CineMedia Inc. ( NCMI – Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:

A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world.


The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.

This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 19.72 exchange rate usd to aud. If we focus on the long-term PE trend, National CineMedia’s current PE level puts it way below its midpoint of 31.20 over the past five years current us stock market futures. In fact, the current P/E marks the stock’s lowest in the said time frame, thus indicating immense scope for entry.

Further, the stock’s PE compares favorably with the Zacks Business Services sector’s trailing twelve months PE ratio, which stands at 23.66. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.

We should point out that National CineMedia has a forward PE ratio (price relative to this year’s earnings) of just 20.64, so it is fair to expect an increase in the company’s share price in the near future.

Another key metric to note is the Price/Sales ratio cad to usd exchange rate by date. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.

Right now, National CineMedia has a P/S ratio of about 0.78. This is considerably lower than the S&P 500 average, which comes in at 3.10 right now europe market futures. Also, as we can see in the chart below, NCMI is at the lower end of its range in the time period from a P/S metric. This suggests some level of undervalued trading—at least compared to historical norms.

In aggregate, National CineMedia currently has a Zacks Value Style Score of A, putting it into the top 20% of all stocks we cover from this look usd zar forecast. This makes National CineMedia a solid choice for value investors.

Though National CineMedia might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of C and a Momentum score of B binary to denary converter. This gives NCMI a Zacks VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)

Meanwhile, the company’s recent earnings estimates have been slightly mixed. The current quarter has seen two estimates go higher in the past sixty days compared to no downward revisions, while the full year estimate has seen one upward and downward revision each, in the same time period.

This has had a somewhat negative impact on the consensus estimate though, as the full year consensus estimate has tumbled 10% in the past two months, while the current quarter estimate has remained unchanged marketing future trends. You can see the consensus estimate trend and recent price action for the stock in the chart below:

Given these trends, the stock has just a Zacks Rank #3 (Hold), which indicates why we are looking for in-line performance from the company in the near term.

National CineMedia is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. While the stock has a Zacks Rank #3, its solid Zacks Industry Rank (Top 28% out of 265 Zacks industries) indicates that the broader factors are favorable for the company.

So, value investors might want to wait for estimates to turn around in this name first, but once that happens, this stock could be a compelling pick.

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system usa today subscription. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.


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