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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is BGC Partners . BGCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.16. This compares to its industry's average Forward P/E of 12.24. Over the past year, BGCP's Forward P/E has been as high as 9.74 and as low as 3.32, with a median of 8.02.
Investors should also recognize that BGCP has a P/B ratio of 1.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.22. Over the past 12 months, BGCP's P/B has been as high as 2.85 and as low as 1.03, with a median of 2.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BGCP has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that BGCP has a P/CF ratio of 5.59. 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. BGCP's current P/CF looks attractive when compared to its industry's average P/CF of 17.19. Over the past 52 weeks, BGCP's P/CF has been as high as 26.01 and as low as 4.42, with a median of 11.69.
Value investors will likely look at more than just these metrics, but the above data helps show that BGC Partners is likely undervalued currently. And when considering the strength of its earnings outlook, BGCP sticks out at as one of the market's strongest value stocks.
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Is BGC Partners (BGCP) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is BGC Partners . BGCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.16. This compares to its industry's average Forward P/E of 12.24. Over the past year, BGCP's Forward P/E has been as high as 9.74 and as low as 3.32, with a median of 8.02.
Investors should also recognize that BGCP has a P/B ratio of 1.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.22. Over the past 12 months, BGCP's P/B has been as high as 2.85 and as low as 1.03, with a median of 2.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BGCP has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that BGCP has a P/CF ratio of 5.59. 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. BGCP's current P/CF looks attractive when compared to its industry's average P/CF of 17.19. Over the past 52 weeks, BGCP's P/CF has been as high as 26.01 and as low as 4.42, with a median of 11.69.
Value investors will likely look at more than just these metrics, but the above data helps show that BGC Partners is likely undervalued currently. And when considering the strength of its earnings outlook, BGCP sticks out at as one of the market's strongest value stocks.