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Are Investors Undervaluing BGC Group, Inc. (BGC) Right Now?

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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, 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.

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 BGC Group, Inc. (BGC - Free Report) . BGC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.39, while its industry has an average P/E of 12.78. Over the last 12 months, BGC's Forward P/E has been as high as 10.94 and as low as 6.22, with a median of 8.10.

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. BGC has a P/S ratio of 1.51. This compares to its industry's average P/S of 2.07.

Finally, investors should note that BGC has a P/CF ratio of 15.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.24. BGC's P/CF has been as high as 20.79 and as low as 13.04, with a median of 16.52, all within the past year.

These are only a few of the key metrics included in BGC Group, Inc.'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, BGC looks like an impressive value stock at the moment.

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