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Is GEE Group (JOB) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 GEE Group (JOB - Free Report) . JOB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.33, which compares to its industry's average of 10.51. Over the last 12 months, JOB's Forward P/E has been as high as 9.06 and as low as 6.94, with a median of 7.90.

JOB is also sporting a PEG ratio of 0.49. 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. JOB's industry currently sports an average PEG of 1.26. Over the past 52 weeks, JOB's PEG has been as high as 0.60 and as low as 0.46, with a median of 0.53.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JOB has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.53.

Finally, investors should note that JOB has a P/CF ratio of 2.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. JOB's current P/CF looks attractive when compared to its industry's average P/CF of 8.65. Over the past 52 weeks, JOB's P/CF has been as high as 15.11 and as low as -4.58, with a median of 2.86.

KornFerry International (KFY - Free Report) may be another strong Staffing Firms stock to add to your shortlist. KFY is a # 2 (Buy) stock with a Value grade of A.

KornFerry International also has a P/B ratio of 2.18 compared to its industry's price-to-book ratio of 2.56. Over the past year, its P/B ratio has been as high as 3.06, as low as 1.80, with a median of 2.48.

These are only a few of the key metrics included in GEE Group and KornFerry International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, JOB and KFY look like an impressive value stock at the moment.


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