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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is GEA Group (GEAGF - Free Report) . GEAGF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for GEAGF is its P/B ratio of 2.98. The P/B is a method of comparing a stock's market value to 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 5.66. Within the past 52 weeks, GEAGF's P/B has been as high as 4 and as low as 2.41, with a median of 2.81.
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. GEAGF has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.53.
Finally, investors should note that GEAGF has a P/CF ratio of 12.35. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.56. Over the past 52 weeks, GEAGF's P/CF has been as high as 25.08 and as low as 10, with a median of 11.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GEA Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEAGF feels like a great value stock at the moment.
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Is GEA Group (GEAGF) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is GEA Group (GEAGF - Free Report) . GEAGF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for GEAGF is its P/B ratio of 2.98. The P/B is a method of comparing a stock's market value to 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 5.66. Within the past 52 weeks, GEAGF's P/B has been as high as 4 and as low as 2.41, with a median of 2.81.
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. GEAGF has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.53.
Finally, investors should note that GEAGF has a P/CF ratio of 12.35. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.56. Over the past 52 weeks, GEAGF's P/CF has been as high as 25.08 and as low as 10, with a median of 11.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GEA Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEAGF feels like a great value stock at the moment.