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Are Investors Undervaluing GEE Group (JOB) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8 right now. For comparison, its industry sports an average P/E of 10.86. Over the past year, JOB's Forward P/E has been as high as 9.06 and as low as 6.83, with a median of 7.84.
JOB is also sporting a PEG ratio of 0.53. 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. JOB's industry currently sports an average PEG of 1.27. JOB's PEG has been as high as 0.60 and as low as 0.46, with a median of 0.52, all within the past year.
Finally, investors should note that JOB has a P/CF ratio of 3.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.94. 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 2.88.
Another great Staffing Firms stock you could consider is RCM Technologies (RCMT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, RCM Technologies holds a P/B ratio of 4.88 and its industry's price-to-book ratio is 2.53. RCMT's P/B has been as high as 9.40, as low as 2.37, with a median of 3.39 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GEE Group and RCM Technologies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JOB and RCMT feels like a great value stock at the moment.