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Are Investors Undervaluing G4S PLC (GFSZY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is G4S PLC (GFSZY - Free Report) . GFSZY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.49. This compares to its industry's average Forward P/E of 17.97. 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 10.05.

We also note that GFSZY holds a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GFSZY's PEG compares to its industry's average PEG of 2.88. GFSZY's PEG has been as high as 2.11 and as low as 1.46, with a median of 1.76, all within the past year.

These are just a handful of the figures considered in G4S PLC'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 GFSZY is an impressive value stock right now.


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