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.
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 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 stock to keep an eye on is General Finance . GFN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.77, while its industry has an average P/E of 17.06. Over the past year, GFN's Forward P/E has been as high as 18.94 and as low as -89.51, with a median of 12.98.
Investors should also note that GFN holds a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GFN's PEG compares to its industry's average PEG of 1.64. Over the last 12 months, GFN's PEG has been as high as 1.72 and as low as -8.14, with a median of 1.15.
Investors should also recognize that GFN has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.43. GFN's P/B has been as high as 2.40 and as low as 1.01, with a median of 1.84, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GFN has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.48.
Finally, we should also recognize that GFN has a P/CF ratio of 2.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.46. Within the past 12 months, GFN's P/CF has been as high as 13.17 and as low as 2.53, with a median of 6.18.
These are only a few of the key metrics included in General Finance'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, GFN looks like an impressive value stock at the moment.
Image: Bigstock
Is General Finance (GFN) a Great Value Stock Right Now?
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.
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 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 stock to keep an eye on is General Finance . GFN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.77, while its industry has an average P/E of 17.06. Over the past year, GFN's Forward P/E has been as high as 18.94 and as low as -89.51, with a median of 12.98.
Investors should also note that GFN holds a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GFN's PEG compares to its industry's average PEG of 1.64. Over the last 12 months, GFN's PEG has been as high as 1.72 and as low as -8.14, with a median of 1.15.
Investors should also recognize that GFN has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.43. GFN's P/B has been as high as 2.40 and as low as 1.01, with a median of 1.84, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GFN has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.48.
Finally, we should also recognize that GFN has a P/CF ratio of 2.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.46. Within the past 12 months, GFN's P/CF has been as high as 13.17 and as low as 2.53, with a median of 6.18.
These are only a few of the key metrics included in General Finance'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, GFN looks like an impressive value stock at the moment.