Is Cumulus Media (CMLS) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Cumulus Media (CMLS) is a stock many investors are watching right now. CMLS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.04, while its industry has an average P/E of 12.25. Over the past year, CMLS's Forward P/E has been as high as 20.97 and as low as -26.39, with a median of 7.04.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CMLS has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.68.

Finally, investors should note that CMLS has a P/CF ratio of 3.65. 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. CMLS's P/CF compares to its industry's average P/CF of 12.93. Over the past 52 weeks, CMLS's P/CF has been as high as 11.21 and as low as -655.37, with a median of 3.78.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cumulus Media is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMLS feels like a great value stock at the moment.

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