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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Geo Group (GEO - Free Report) . GEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.47. This compares to its industry's average Forward P/E of 17.60. Over the last 12 months, GEO's Forward P/E has been as high as 13.48 and as low as 7.26, with a median of 10.72.
We also note that GEO holds a PEG ratio of 1.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GEO's PEG compares to its industry's average PEG of 2.78. GEO's PEG has been as high as 2.25 and as low as 1.21, with a median of 1.79, all within the past year.
Another notable valuation metric for GEO is its P/B ratio of 2.43. The P/B ratio pits a stock's market value against 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 2.66. Over the past year, GEO's P/B has been as high as 3.07 and as low as 2.13, with a median of 2.60.
Finally, we should also recognize that GEO has a P/CF ratio of 8.55. 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 current P/CF looks attractive when compared to its industry's average P/CF of 16.97. Within the past 12 months, GEO's P/CF has been as high as 11.48 and as low as 7.84, with a median of 9.57.
These are just a handful of the figures considered in Geo Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GEO is an impressive value stock right now.
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Is Geo Group (GEO) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Geo Group (GEO - Free Report) . GEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.47. This compares to its industry's average Forward P/E of 17.60. Over the last 12 months, GEO's Forward P/E has been as high as 13.48 and as low as 7.26, with a median of 10.72.
We also note that GEO holds a PEG ratio of 1.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GEO's PEG compares to its industry's average PEG of 2.78. GEO's PEG has been as high as 2.25 and as low as 1.21, with a median of 1.79, all within the past year.
Another notable valuation metric for GEO is its P/B ratio of 2.43. The P/B ratio pits a stock's market value against 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 2.66. Over the past year, GEO's P/B has been as high as 3.07 and as low as 2.13, with a median of 2.60.
Finally, we should also recognize that GEO has a P/CF ratio of 8.55. 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 current P/CF looks attractive when compared to its industry's average P/CF of 16.97. Within the past 12 months, GEO's P/CF has been as high as 11.48 and as low as 7.84, with a median of 9.57.
These are just a handful of the figures considered in Geo Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GEO is an impressive value stock right now.