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Is The Geo Group (GEO) a Great Value Stock 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, 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is The Geo Group (GEO - Free Report) . GEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors should also recognize that GEO has a P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.37. Over the past year, GEO's P/B has been as high as 1.16 and as low as 0.66, with a median of 0.88.

Finally, we should also recognize that GEO has a P/CF ratio of 4.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.28. Within the past 12 months, GEO's P/CF has been as high as 4.40 and as low as 2.04, with a median of 3.17.

If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at The Necessity Retail REIT, Inc. . RTL is a # 2 (Buy) stock with a Value score of A.

The Necessity Retail REIT, Inc. is trading at a forward earnings multiple of 6.75 at the moment, with a PEG ratio of 1.13. This compares to its industry's average P/E of 17.58 and average PEG ratio of 2.39.

Over the past year, RTL's P/E has been as high as 9.74, as low as 6.23, with a median of 8.66; its PEG ratio has been as high as 1.57, as low as 1.04, with a median of 0.31 during the same time period.

The Necessity Retail REIT, Inc. sports a P/B ratio of 0.58 as well; this compares to its industry's price-to-book ratio of 2.37. In the past 52 weeks, RTL's P/B has been as high as 0.68, as low as 0.50, with a median of 0.58.

These are just a handful of the figures considered in The Geo Group and The Necessity Retail REIT, 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 GEO and RTL is an impressive value stock right now.


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