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Are Investors Undervaluing Marcus & Millichap (MMI) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Marcus & Millichap (MMI - Free Report) . MMI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.60 right now. For comparison, its industry sports an average P/E of 22.64. Over the past 52 weeks, MMI's Forward P/E has been as high as 19.85 and as low as 10.88, with a median of 17.11.

Finally, investors will want to recognize that MMI has a P/CF ratio of 10.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MMI's current P/CF looks attractive when compared to its industry's average P/CF of 18.85. Within the past 12 months, MMI's P/CF has been as high as 18.63 and as low as 8.42, with a median of 13.49.

These are only a few of the key metrics included in Marcus & Millichap'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, MMI looks like an impressive value stock at the moment.


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