Value investing involves identifying undervalued companies based on fundamental analysis and established metrics. Zacks' Style Scores system includes a "Value" category, highlighting stocks with high Zacks Ranks and "A" grades in Value.
MGM Resorts International (MGM) is a notable value stock with a Zacks Rank of #2 (Buy) and a Value grade of A. Its P/E ratio of 18.02 is significantly lower than the industry average of 34.37. MGM's PEG ratio of 1.51 is also favorable compared to the industry average of 2.11.
Value investors also consider the P/S ratio, which measures a stock's price relative to its sales. MGM's P/S ratio of 0.91 is lower than the industry average of 1.02. Additionally, MGM's P/CF ratio of 7.96 is attractive compared to the industry average of 23.69.
These metrics indicate that MGM is potentially undervalued based on its strong cash flow and earnings outlook. As a result, it is considered a compelling value stock for investors seeking undervalued opportunities.