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.
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.
One stock to keep an eye on is Greenhill & Co., Inc. . GHL 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 9.27. This compares to its industry's average Forward P/E of 13.04. Over the past year, GHL's Forward P/E has been as high as 207.72 and as low as -288.86, with a median of 11.36.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GHL has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Greenhill & Co., Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GHL feels like a great value stock at the moment.
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Should Value Investors Buy Greenhill & Co., Inc. (GHL) Stock?
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.
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.
One stock to keep an eye on is Greenhill & Co., Inc. . GHL 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 9.27. This compares to its industry's average Forward P/E of 13.04. Over the past year, GHL's Forward P/E has been as high as 207.72 and as low as -288.86, with a median of 11.36.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GHL has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Greenhill & Co., Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GHL feels like a great value stock at the moment.