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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 GP Strategies (GPX). GPX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.90, while its industry has an average P/E of 35.37. Over the last 12 months, GPX's Forward P/E has been as high as 19.84 and as low as 9.34, with a median of 11.53.
Investors will also notice that GPX has a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GPX's PEG compares to its industry's average PEG of 1.53. Within the past year, GPX's PEG has been as high as 1.32 and as low as 0.62, with a median of 0.77.
Finally, our model also underscores that GPX has a P/CF ratio of 15.53. 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 35.72. Within the past 12 months, GPX's P/CF has been as high as 17.11 and as low as 11.34, with a median of 14.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GP Strategies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GPX feels like a great value stock at the moment.