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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Genpact (G - Free Report) . G is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.12, which compares to its industry's average of 23.19. Over the past 52 weeks, G's Forward P/E has been as high as 20.54 and as low as 15.69, with a median of 17.51.
G is also sporting a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. G's PEG compares to its industry's average PEG of 2.24. G's PEG has been as high as 2.05 and as low as 1.57, with a median of 1.75, all within the past year.
Investors should also recognize that G has a P/B ratio of 4.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 8.87. Within the past 52 weeks, G's P/B has been as high as 4.79 and as low as 4.10, with a median of 4.40.
Finally, our model also underscores that G has a P/CF ratio of 15.61. 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. G's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. G's P/CF has been as high as 19.01 and as low as 14.95, with a median of 16.28, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genpact is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, G feels like a great value stock at the moment.
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Is Genpact (G) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Genpact (G - Free Report) . G is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.12, which compares to its industry's average of 23.19. Over the past 52 weeks, G's Forward P/E has been as high as 20.54 and as low as 15.69, with a median of 17.51.
G is also sporting a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. G's PEG compares to its industry's average PEG of 2.24. G's PEG has been as high as 2.05 and as low as 1.57, with a median of 1.75, all within the past year.
Investors should also recognize that G has a P/B ratio of 4.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 8.87. Within the past 52 weeks, G's P/B has been as high as 4.79 and as low as 4.10, with a median of 4.40.
Finally, our model also underscores that G has a P/CF ratio of 15.61. 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. G's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. G's P/CF has been as high as 19.01 and as low as 14.95, with a median of 16.28, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genpact is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, G feels like a great value stock at the moment.