Back to top

Image: Bigstock

Are These Finance Stocks Undervalued Right Now?

Read MoreHide Full Article

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Jones Lang LaSalle (JLL - Free Report) is a stock many investors are watching right now. JLL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.81, while its industry has an average P/E of 16.64. JLL's Forward P/E has been as high as 19.17 and as low as 10.89, with a median of 15.44, all within the past year.

We also note that JLL holds a PEG ratio of 1.31. 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. JLL's industry currently sports an average PEG of 1.46. Over the past 52 weeks, JLL's PEG has been as high as 2.13 and as low as 1.21, with a median of 1.72.

Investors could also keep in mind Newmark Group (NMRK - Free Report) , an Real Estate - Operations stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Newmark Group is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.82. This compares to its industry's average P/E of 16.64 and average PEG ratio of 1.46.

Over the last 12 months, NMRK's P/E has been as high as 12.27, as low as 7.37, with a median of 9.31, and its PEG ratio has been as high as 1.23, as low as 0.74, with a median of 0.93.

Newmark Group sports a P/B ratio of 1.77 as well; this compares to its industry's price-to-book ratio of 0.63. In the past 52 weeks, NMRK's P/B has been as high as 2.54, as low as 1.43, with a median of 1.90.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Jones Lang LaSalle and Newmark Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JLL and NMRK feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Jones Lang LaSalle Incorporated (JLL) - free report >>

Newmark Group, Inc. (NMRK) - free report >>

Published in