Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks
26 Feb

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Light & Wonder (LNW)

Light & Wonder, Inc., formerly known as Scientific Games Corporation, is a leading developer of technology-based products and services and associated content for the gaming, social and digital gaming industries globally. The company changed its name on Apr 28, 2022 due to the sale of the Lottery Business that continues to use the previous name of Scientific Games, and also to align with its vision of becoming a leading cross-platform global games company.

LNW boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Light & Wonder are trading at a forward earnings multiple of 18X, as well as a PEG Ratio of 0.3, a Price/Cash Flow ratio of 16.7X, and a Price/Sales ratio of 2.8X.

A company's earnings performance is important for value investors as well. For fiscal 2025, one analyst revised their earnings estimate higher in the last 60 days for LNW, while the Zacks Consensus Estimate has increased $0.14 to $5.66 per share. LNW also holds an average earnings surprise of 29.1%.

Investors should take the time to consider LNW for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Light & Wonder, Inc. (LNW) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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