Should Value Investors Buy Great Elm Capital Group, Inc. (GECC) Stock?

GECC

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Great Elm Capital Group, Inc. (GECC - Free Report) is a stock many investors are watching right now. GECC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that GECC has a P/B ratio of 0.73. 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 1.84. Within the past 52 weeks, GECC's P/B has been as high as 0.94 and as low as 0.30, with a median of 0.85.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GECC has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.84.

These are just a handful of the figures considered in Great Elm Capital Group, Inc.'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 GECC is an impressive value stock right now.

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