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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Greif (GEF - Free Report) . GEF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.26. This compares to its industry's average Forward P/E of 14.14. Over the past year, GEF's Forward P/E has been as high as 19.12 and as low as 10.67, with a median of 13.12.
GEF is also sporting a PEG ratio of 1.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEF's industry has an average PEG of 2.92 right now. Over the last 12 months, GEF's PEG has been as high as 1.91 and as low as 1.07, with a median of 1.37.
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. GEF has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.93.
Finally, investors should note that GEF has a P/CF ratio of 6.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.77. Within the past 12 months, GEF's P/CF has been as high as 7.47 and as low as 5.95, with a median of 6.45.
These are just a handful of the figures considered in Greif'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 GEF is an impressive value stock right now.
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Are Investors Undervaluing Greif (GEF) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Greif (GEF - Free Report) . GEF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.26. This compares to its industry's average Forward P/E of 14.14. Over the past year, GEF's Forward P/E has been as high as 19.12 and as low as 10.67, with a median of 13.12.
GEF is also sporting a PEG ratio of 1.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GEF's industry has an average PEG of 2.92 right now. Over the last 12 months, GEF's PEG has been as high as 1.91 and as low as 1.07, with a median of 1.37.
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. GEF has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.93.
Finally, investors should note that GEF has a P/CF ratio of 6.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.77. Within the past 12 months, GEF's P/CF has been as high as 7.47 and as low as 5.95, with a median of 6.45.
These are just a handful of the figures considered in Greif'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 GEF is an impressive value stock right now.