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Why GAIN Capital (GCAP) Could Be a Top Value Stock Pick

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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends? Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; GAIN Capital Holdings, Inc. .

GAIN Capital in Focus

GCAP may be an interesting play thanks to its forward PE of 9.5, its P/S ratio of 1.0, and its decent dividend yield of 10.7%. These factors suggest that GAIN Capital is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that GCAP has decent revenue metrics to back up its earnings.  

But before you think that GAIN Capital is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 24.3% in the past 30 days, thanks to two upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push GCAP to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, GAIN Capital is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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