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Is City Office REIT (CIO) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
City Office REIT (CIO - Free Report) is a stock many investors are watching right now. CIO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.21, which compares to its industry's average of 15.73. Over the last 12 months, CIO's Forward P/E has been as high as 6.25 and as low as 3.86, with a median of 4.81.
Investors will also notice that CIO has a PEG ratio of 1.03. 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. CIO's PEG compares to its industry's average PEG of 2.01. Over the past 52 weeks, CIO's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIO has a P/S ratio of 1.66. This compares to its industry's average P/S of 3.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that City Office REIT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIO feels like a great value stock at the moment.
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Is City Office REIT (CIO) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
City Office REIT (CIO - Free Report) is a stock many investors are watching right now. CIO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.21, which compares to its industry's average of 15.73. Over the last 12 months, CIO's Forward P/E has been as high as 6.25 and as low as 3.86, with a median of 4.81.
Investors will also notice that CIO has a PEG ratio of 1.03. 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. CIO's PEG compares to its industry's average PEG of 2.01. Over the past 52 weeks, CIO's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIO has a P/S ratio of 1.66. This compares to its industry's average P/S of 3.81.
These figures are just a handful of the metrics value investors tend to look at, but they help show that City Office REIT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIO feels like a great value stock at the moment.