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Are Investors Undervaluing Guild (GHLD) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Guild (GHLD - Free Report) . GHLD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.92. This compares to its industry's average Forward P/E of 17.37. GHLD's Forward P/E has been as high as 12.55 and as low as 7.15, with a median of 8.44, all within the past year.

Investors should also note that GHLD holds a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GHLD's PEG compares to its industry's average PEG of 1.03. Over the last 12 months, GHLD's PEG has been as high as 0.89 and as low as 0.20, with a median of 0.25.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GHLD has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.72.

Finally, investors will want to recognize that GHLD has a P/CF ratio of 6.25. 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 15.27. Over the past year, GHLD's P/CF has been as high as 16.74 and as low as -18.04, with a median of 6.17.

If you're looking for another solid Financial - Miscellaneous Services value stock, take a look at Orix Corp Ads (IX - Free Report) . IX is a # 1 (Strong Buy) stock with a Value score of A.

Orix Corp Ads is trading at a forward earnings multiple of 7.74 at the moment, with a PEG ratio of 0.78. This compares to its industry's average P/E of 17.37 and average PEG ratio of 1.03.

Over the past year, IX's P/E has been as high as 11.39, as low as 7.34, with a median of 9.32; its PEG ratio has been as high as 1.10, as low as 0.78, with a median of 0.25 during the same time period.

Additionally, Orix Corp Ads has a P/B ratio of 0.83 while its industry's price-to-book ratio sits at 3.32. For IX, this valuation metric has been as high as 1.14, as low as 0.76, with a median of 0.96 over the past year.

These are just a handful of the figures considered in Guild and Orix Corp Ads'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 GHLD and IX is an impressive value stock right now.


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