We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy The Geo Group (GEO) Stock?
Read MoreHide Full Article
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
The Geo Group (GEO - Free Report) is a stock many investors are watching right now. GEO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that GEO has a P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.92. GEO's P/B has been as high as 1.36 and as low as 0.66, with a median of 0.85, over the past year.
Finally, investors should note that GEO has a P/CF ratio of 5.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.39. Over the past year, GEO's P/CF has been as high as 6.65 and as low as 2.86, with a median of 3.94.
Another great REIT and Equity Trust - Other stock you could consider is Service Properties Trust (SVC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Service Properties Trust has a P/B ratio of 0.84 while its industry's price-to-book ratio sits at 1.92. For SVC, this valuation metric has been as high as 1.03, as low as 0.56, with a median of 0.85 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Geo Group and Service Properties Trust are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEO and SVC feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy The Geo Group (GEO) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
The Geo Group (GEO - Free Report) is a stock many investors are watching right now. GEO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that GEO has a P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.92. GEO's P/B has been as high as 1.36 and as low as 0.66, with a median of 0.85, over the past year.
Finally, investors should note that GEO has a P/CF ratio of 5.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.39. Over the past year, GEO's P/CF has been as high as 6.65 and as low as 2.86, with a median of 3.94.
Another great REIT and Equity Trust - Other stock you could consider is Service Properties Trust (SVC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Service Properties Trust has a P/B ratio of 0.84 while its industry's price-to-book ratio sits at 1.92. For SVC, this valuation metric has been as high as 1.03, as low as 0.56, with a median of 0.85 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Geo Group and Service Properties Trust are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEO and SVC feels like a great value stock at the moment.