Is G4S PLC (GFSZY) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company to watch right now is G4S PLC (GFSZY). GFSZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.36, which compares to its industry's average of 17.58. Over the past 52 weeks, GFSZY's Forward P/E has been as high as 13.36 and as low as 4.51, with a median of 10.28.
Investors will also notice that GFSZY has a PEG ratio of 1.76. 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. GFSZY's industry has an average PEG of 2.82 right now. GFSZY's PEG has been as high as 2.11 and as low as 1.56, with a median of 1.79, all within the past year.
These are just a handful of the figures considered in G4S PLC'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 GFSZY is an impressive value stock right now.
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