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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Geo Group (GEO - Free Report) . GEO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.62. This compares to its industry's average Forward P/E of 17.70. GEO's Forward P/E has been as high as 13.63 and as low as 7.92, with a median of 10.89, all within the past year.
Investors should also note that GEO holds a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEO's industry currently sports an average PEG of 2.79. Over the past 52 weeks, GEO's PEG has been as high as 2.27 and as low as 1.32, with a median of 1.81.
Finally, our model also underscores that GEO has a P/CF ratio of 9.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GEO's P/CF compares to its industry's average P/CF of 17.09. Over the past year, GEO's P/CF has been as high as 11.94 and as low as 7.84, with a median of 9.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Geo Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEO feels like a great value stock at the moment.
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Is Geo Group (GEO) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Geo Group (GEO - Free Report) . GEO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.62. This compares to its industry's average Forward P/E of 17.70. GEO's Forward P/E has been as high as 13.63 and as low as 7.92, with a median of 10.89, all within the past year.
Investors should also note that GEO holds a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEO's industry currently sports an average PEG of 2.79. Over the past 52 weeks, GEO's PEG has been as high as 2.27 and as low as 1.32, with a median of 1.81.
Finally, our model also underscores that GEO has a P/CF ratio of 9.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GEO's P/CF compares to its industry's average P/CF of 17.09. Over the past year, GEO's P/CF has been as high as 11.94 and as low as 7.84, with a median of 9.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Geo Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEO feels like a great value stock at the moment.