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Is CBRE Group (CBRE) Stock Undervalued Right Now?

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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, 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.

CBRE Group (CBRE - Free Report) is a stock many investors are watching right now. CBRE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.46, which compares to its industry's average of 18.76. CBRE's Forward P/E has been as high as 14.83 and as low as 11.14, with a median of 13.46, all within the past year.

Investors should also note that CBRE holds a PEG ratio of 1.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CBRE's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, CBRE's PEG has been as high as 1.33 and as low as 0.86, with a median of 1.19.

Value investors will likely look at more than just these metrics, but the above data helps show that CBRE Group is likely undervalued currently. And when considering the strength of its earnings outlook, CBRE sticks out at as one of the market's strongest value stocks.


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