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Should Value Investors Buy GP Strategies (GPX) Stock?

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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 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 is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that GPX holds a PEG ratio of 0.58. 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. GPX's PEG compares to its industry's average PEG of 1.50. Over the last 12 months, GPX's PEG has been as high as 1.32 and as low as 0.58, with a median of 0.77.

Finally, investors will want to recognize that GPX has a P/CF ratio of 11.52. 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. GPX's current P/CF looks attractive when compared to its industry's average P/CF of 35.72. Over the past 52 weeks, GPX's P/CF has been as high as 17.11 and as low as 11.34, with a median of 14.20.

These are just a handful of the figures considered in GP Strategies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GPX is an impressive value stock right now.

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