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Are Investors Undervaluing City Office REIT (CIO) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is City Office REIT (CIO - Free Report) . CIO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that CIO holds a PEG ratio of 0.84. 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. CIO's industry currently sports an average PEG of 2.33. CIO's PEG has been as high as 0.94 and as low as 0.51, with a median of 0.74, all within the past year.
Finally, we should also recognize that CIO has a P/CF ratio of 4.26. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.62. CIO's P/CF has been as high as 5.29 and as low as 2.61, with a median of 3.64, all within the past year.
These are only a few of the key metrics included in City Office REIT's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CIO looks like an impressive value stock at the moment.