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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.
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 GEE Group (JOB - Free Report) . JOB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.30. This compares to its industry's average Forward P/E of 10.54. Over the last 12 months, JOB's Forward P/E has been as high as 9.06 and as low as 6.83, with a median of 7.87.
We also note that JOB holds a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JOB's industry currently sports an average PEG of 1.23. 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.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.44. This compares to its industry's average P/S of 0.46.
Finally, our model also underscores that JOB has a P/CF ratio of 2.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.65. Over the past 52 weeks, JOB's P/CF has been as high as 15.11 and as low as -4.11, with a median of 2.91.
Investors could also keep in mind RCM Technologies (RCMT - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
RCM Technologies sports a P/B ratio of 4.33 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, RCMT's P/B has been as high as 9.40, as low as 2.37, with a median of 3.56.
These are just a handful of the figures considered in GEE Group and RCM Technologies'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 JOB and RCMT is an impressive value stock right now.
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Should Value Investors Buy GEE Group (JOB) 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.
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 GEE Group (JOB - Free Report) . JOB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.30. This compares to its industry's average Forward P/E of 10.54. Over the last 12 months, JOB's Forward P/E has been as high as 9.06 and as low as 6.83, with a median of 7.87.
We also note that JOB holds a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JOB's industry currently sports an average PEG of 1.23. 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.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.44. This compares to its industry's average P/S of 0.46.
Finally, our model also underscores that JOB has a P/CF ratio of 2.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.65. Over the past 52 weeks, JOB's P/CF has been as high as 15.11 and as low as -4.11, with a median of 2.91.
Investors could also keep in mind RCM Technologies (RCMT - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
RCM Technologies sports a P/B ratio of 4.33 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, RCMT's P/B has been as high as 9.40, as low as 2.37, with a median of 3.56.
These are just a handful of the figures considered in GEE Group and RCM Technologies'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 JOB and RCMT is an impressive value stock right now.