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Should Value Investors Buy Global Blue Group (GB) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Global Blue Group (GB - Free Report) . GB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 17.33 right now. For comparison, its industry sports an average P/E of 22.16. Over the past 52 weeks, GB's Forward P/E has been as high as 22.71 and as low as 11.72, with a median of 17.33.

Finally, our model also underscores that GB has a P/CF ratio of 10.66. 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 17.51. Within the past 12 months, GB's P/CF has been as high as 19.51 and as low as 10.00, with a median of 13.11.

Investors could also keep in mind PagSeguro Digital (PAGS - Free Report) , another Financial Transaction Services stock with a Zacks Rank of #2 (Buy) and Value grade of A.

PagSeguro Digital is currently trading with a Forward P/E ratio of 6.86 while its PEG ratio sits at 0.61. Both of the company's metrics compare favorably to its industry's average P/E of 22.16 and average PEG ratio of 1.63.

PAGS's price-to-earnings ratio has been as high as 9.72 and as low as 4.84, with a median of 6.55, while its PEG ratio has been as high as 0.69 and as low as 0.33, with a median of 0.46, all within the past year.

Furthermore, PagSeguro Digital holds a P/B ratio of 1.17 and its industry's price-to-book ratio is 8.55. PAGS's P/B has been as high as 1.75, as low as 0.76, with a median of 1.06 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Blue Group and PagSeguro Digital are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GB and PAGS feels like a great value stock at the moment.


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