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Should Value Investors Buy G4S PLC (GFSZY) Stock?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

G4S PLC (GFSZY - Free Report) is a stock many investors are watching right now. GFSZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.34, while its industry has an average P/E of 18.10. Over the past year, GFSZY's Forward P/E has been as high as 12.69 and as low as 4.51, with a median of 9.72.

Investors will also notice that GFSZY has a PEG ratio of 1.76. 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. GFSZY's industry has an average PEG of 2.90 right now. Over the past 52 weeks, GFSZY's PEG has been as high as 2.11 and as low as 1.46, with a median of 1.74.

These figures are just a handful of the metrics value investors tend to look at, but they help show that G4S PLC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GFSZY feels like a great value stock at the moment.


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