We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is The Necessity Retail REIT, Inc. (RTL) a Great Value Stock Right Now?
Read MoreHide Full Article
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is The Necessity Retail REIT, Inc. . RTL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.07, which compares to its industry's average of 20.65. Over the last 12 months, RTL's Forward P/E has been as high as 9.99 and as low as 6.63, with a median of 8.75.
Investors will also notice that RTL has a PEG ratio of 1.18. 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. RTL's industry currently sports an average PEG of 2.80. Over the past 52 weeks, RTL's PEG has been as high as 1.57 and as low as 1.10, with a median of 1.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RTL has a P/S ratio of 3.04. This compares to its industry's average P/S of 6.28.
Finally, investors will want to recognize that RTL has a P/CF ratio of 9.89. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.17. Over the past year, RTL's P/CF has been as high as 11.72 and as low as 7.20, with a median of 8.42.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Uniti Group (UNIT - Free Report) . UNIT is a # 2 (Buy) stock with a Value score of A.
Furthermore, Uniti Group holds a P/B ratio of -1.48 and its industry's price-to-book ratio is 2.91. UNIT's P/B has been as high as -1.12, as low as -1.59, with a median of -1.40 over the past 12 months.
These are just a handful of the figures considered in The Necessity Retail REIT, Inc. and Uniti 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 RTL and UNIT is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is The Necessity Retail REIT, Inc. (RTL) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is The Necessity Retail REIT, Inc. . RTL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.07, which compares to its industry's average of 20.65. Over the last 12 months, RTL's Forward P/E has been as high as 9.99 and as low as 6.63, with a median of 8.75.
Investors will also notice that RTL has a PEG ratio of 1.18. 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. RTL's industry currently sports an average PEG of 2.80. Over the past 52 weeks, RTL's PEG has been as high as 1.57 and as low as 1.10, with a median of 1.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RTL has a P/S ratio of 3.04. This compares to its industry's average P/S of 6.28.
Finally, investors will want to recognize that RTL has a P/CF ratio of 9.89. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.17. Over the past year, RTL's P/CF has been as high as 11.72 and as low as 7.20, with a median of 8.42.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Uniti Group (UNIT - Free Report) . UNIT is a # 2 (Buy) stock with a Value score of A.
Furthermore, Uniti Group holds a P/B ratio of -1.48 and its industry's price-to-book ratio is 2.91. UNIT's P/B has been as high as -1.12, as low as -1.59, with a median of -1.40 over the past 12 months.
These are just a handful of the figures considered in The Necessity Retail REIT, Inc. and Uniti 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 RTL and UNIT is an impressive value stock right now.