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Are Investors Undervaluing The Geo Group (GEO) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
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.
The Geo Group (GEO - Free Report) is a stock many investors are watching right now. GEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is GEO's P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.95. 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 0.85.
Finally, investors should note that GEO has a P/CF ratio of 4.54. 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. GEO's P/CF compares to its industry's average P/CF of 13.38. Over the past 52 weeks, GEO's P/CF has been as high as 4.84 and as low as 2.82, with a median of 3.77.
The Necessity Retail REIT may be another strong REIT and Equity Trust - Other stock to add to your shortlist. RTL is a # 2 (Buy) stock with a Value grade of A.
Shares of The Necessity Retail REIT are currently trading at a forward earnings multiple of 5.58 and a PEG ratio of 0.93 compared to its industry's P/E and PEG ratios of 14.72 and 1.71, respectively.
RTL's Forward P/E has been as high as 9.42 and as low as 4.65, with a median of 6.79. During the same time period, its PEG ratio has been as high as 1.57, as low as 0.77, with a median of 1.12.
The Necessity Retail REIT sports a P/B ratio of 0.54 as well; this compares to its industry's price-to-book ratio of 1.95. In the past 52 weeks, RTL's P/B has been as high as 0.68, as low as 0.45, with a median of 0.59.
These are only a few of the key metrics included in The Geo Group and The Necessity Retail REIT strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GEO and RTL look like an impressive value stock at the moment.
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Are Investors Undervaluing The Geo Group (GEO) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
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.
The Geo Group (GEO - Free Report) is a stock many investors are watching right now. GEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is GEO's P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.95. 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 0.85.
Finally, investors should note that GEO has a P/CF ratio of 4.54. 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. GEO's P/CF compares to its industry's average P/CF of 13.38. Over the past 52 weeks, GEO's P/CF has been as high as 4.84 and as low as 2.82, with a median of 3.77.
The Necessity Retail REIT may be another strong REIT and Equity Trust - Other stock to add to your shortlist. RTL is a # 2 (Buy) stock with a Value grade of A.
Shares of The Necessity Retail REIT are currently trading at a forward earnings multiple of 5.58 and a PEG ratio of 0.93 compared to its industry's P/E and PEG ratios of 14.72 and 1.71, respectively.
RTL's Forward P/E has been as high as 9.42 and as low as 4.65, with a median of 6.79. During the same time period, its PEG ratio has been as high as 1.57, as low as 0.77, with a median of 1.12.
The Necessity Retail REIT sports a P/B ratio of 0.54 as well; this compares to its industry's price-to-book ratio of 1.95. In the past 52 weeks, RTL's P/B has been as high as 0.68, as low as 0.45, with a median of 0.59.
These are only a few of the key metrics included in The Geo Group and The Necessity Retail REIT strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GEO and RTL look like an impressive value stock at the moment.