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Is GEE Group (JOB) Stock Undervalued Right Now?

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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.

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 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), as well as an A grade for Value. The stock is trading with P/E ratio of 6.89 right now. For comparison, its industry sports an average P/E of 11.32. Over the last 12 months, JOB's Forward P/E has been as high as 9.06 and as low as 6.39, with a median of 7.56.

Finally, we should also recognize that JOB has a P/CF ratio of 2.65. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.87. Over the past 52 weeks, JOB's P/CF has been as high as 15.11 and as low as 2.19, with a median of 2.85.

Another great Staffing Firms stock you could consider is Resources Connection (RGP - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Resources Connection also has a P/B ratio of 1.54 compared to its industry's price-to-book ratio of 2.48. Over the past year, its P/B ratio has been as high as 1.96, as low as 1.36, with a median of 1.63.

These are only a few of the key metrics included in GEE Group and Resources Connection 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 RGP look like an impressive value stock at the moment.


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