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Should Value Investors Buy Global Net Lease (GNL) Stock?

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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is Global Net Lease (GNL - Free Report) . GNL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.41, while its industry has an average P/E of 14.16. GNL's Forward P/E has been as high as 7.24 and as low as 4.40, with a median of 5.65, all within the past year.

GNL is also sporting a PEG ratio of 0.90. 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. GNL's PEG compares to its industry's average PEG of 1.93. Over the past 52 weeks, GNL's PEG has been as high as 1.21 and as low as 0.73, with a median of 0.94.

Another valuation metric that we should highlight is GNL's P/B ratio of 0.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.64. Over the past year, GNL's P/B has been as high as 0.88 and as low as 0.60, with a median of 0.73.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GNL has a P/S ratio of 2.66. This compares to its industry's average P/S of 3.84.

These are just a handful of the figures considered in Global Net Lease'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 GNL is an impressive value stock right now.


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