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Are Investors Undervaluing Global Net Lease (GNL) Right Now?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Global Net Lease (GNL - Free Report) . GNL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.50 right now. For comparison, its industry sports an average P/E of 14.80. Over the past year, GNL's Forward P/E has been as high as 7.24 and as low as 4.40, with a median of 5.50.
We also note that GNL holds a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GNL's industry currently sports an average PEG of 2.04. Within the past year, GNL's PEG has been as high as 1.21 and as low as 0.73, with a median of 0.92.
Another valuation metric that we should highlight is GNL's P/B ratio of 0.69. 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. GNL's current P/B looks attractive when compared to its industry's average P/B of 1.71. Within the past 52 weeks, GNL's P/B has been as high as 0.88 and as low as 0.60, with a median of 0.71.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GNL has a P/S ratio of 2.81. This compares to its industry's average P/S of 4.25.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Paramount Group (PGRE - Free Report) . PGRE is a # 2 (Buy) stock with a Value score of A.
Shares of Paramount Group currently holds a Forward P/E ratio of 6.83, and its PEG ratio is 0.26. In comparison, its industry sports average P/E and PEG ratios of 14.80 and 2.04.
PGRE's price-to-earnings ratio has been as high as 8.06 and as low as 5.47, with a median of 6.53, while its PEG ratio has been as high as 0.58 and as low as 0.22, with a median of 0.27, all within the past year.
Additionally, Paramount Group has a P/B ratio of 0.26 while its industry's price-to-book ratio sits at 1.71. For PGRE, this valuation metric has been as high as 0.29, as low as 0.21, with a median of 0.25 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Global Net Lease and Paramount Group are likely undervalued currently. And when considering the strength of its earnings outlook, GNL and PGRE sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Global Net Lease (GNL) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Global Net Lease (GNL - Free Report) . GNL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.50 right now. For comparison, its industry sports an average P/E of 14.80. Over the past year, GNL's Forward P/E has been as high as 7.24 and as low as 4.40, with a median of 5.50.
We also note that GNL holds a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GNL's industry currently sports an average PEG of 2.04. Within the past year, GNL's PEG has been as high as 1.21 and as low as 0.73, with a median of 0.92.
Another valuation metric that we should highlight is GNL's P/B ratio of 0.69. 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. GNL's current P/B looks attractive when compared to its industry's average P/B of 1.71. Within the past 52 weeks, GNL's P/B has been as high as 0.88 and as low as 0.60, with a median of 0.71.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GNL has a P/S ratio of 2.81. This compares to its industry's average P/S of 4.25.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Paramount Group (PGRE - Free Report) . PGRE is a # 2 (Buy) stock with a Value score of A.
Shares of Paramount Group currently holds a Forward P/E ratio of 6.83, and its PEG ratio is 0.26. In comparison, its industry sports average P/E and PEG ratios of 14.80 and 2.04.
PGRE's price-to-earnings ratio has been as high as 8.06 and as low as 5.47, with a median of 6.53, while its PEG ratio has been as high as 0.58 and as low as 0.22, with a median of 0.27, all within the past year.
Additionally, Paramount Group has a P/B ratio of 0.26 while its industry's price-to-book ratio sits at 1.71. For PGRE, this valuation metric has been as high as 0.29, as low as 0.21, with a median of 0.25 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Global Net Lease and Paramount Group are likely undervalued currently. And when considering the strength of its earnings outlook, GNL and PGRE sticks out as one of the market's strongest value stocks.