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Are Investors Undervaluing Mitie Group (MITFY) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Mitie Group (MITFY - Free Report) is a stock many investors are watching right now. MITFY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.26, which compares to its industry's average of 20.07. Over the last 12 months, MITFY's Forward P/E has been as high as 11.34 and as low as 7.32, with a median of 9.75.

We should also highlight that MITFY has a P/B ratio of 3.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MITFY's current P/B looks attractive when compared to its industry's average P/B of 3.82. Over the past year, MITFY's P/B has been as high as 3.82 and as low as 1.68, with a median of 2.76.

Investors could also keep in mind Viad Corp (VVI - Free Report) , an Business - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Viad Corp currently holds a Forward P/E ratio of 30.69, and its PEG ratio is 2.05. In comparison, its industry sports average P/E and PEG ratios of 20.07 and 1.52.

VVI's price-to-earnings ratio has been as high as 38.24 and as low as -83.69, with a median of 22.53, while its PEG ratio has been as high as 2.55 and as low as -5.58, with a median of 1.50, all within the past year.

Viad Corp sports a P/B ratio of 7.33 as well; this compares to its industry's price-to-book ratio of 3.82. In the past 52 weeks, VVI's P/B has been as high as 11.93, as low as 4.10, with a median of 6.59.

Value investors will likely look at more than just these metrics, but the above data helps show that Mitie Group and Viad Corp are likely undervalued currently. And when considering the strength of its earnings outlook, MITFY and VVI sticks out as one of the market's strongest value stocks.


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