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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.
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.
One company value investors might notice is Genpact (G - Free Report) . G is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.80. This compares to its industry's average Forward P/E of 24.66. Over the last 12 months, G's Forward P/E has been as high as 12.05 and as low as 9.75, with a median of 10.95.
Investors should also note that G holds a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. G's PEG compares to its industry's average PEG of 2.66. Over the last 12 months, G's PEG has been as high as 1.50 and as low as 0.97, with a median of 1.33.
Finally, investors should note that G has a P/CF ratio of 9.42. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.44. Within the past 12 months, G's P/CF has been as high as 13.45 and as low as 7.46, with a median of 8.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genpact is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, G feels like a great value stock at the moment.
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Are Investors Undervaluing Genpact (G) Right Now?
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.
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.
One company value investors might notice is Genpact (G - Free Report) . G is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.80. This compares to its industry's average Forward P/E of 24.66. Over the last 12 months, G's Forward P/E has been as high as 12.05 and as low as 9.75, with a median of 10.95.
Investors should also note that G holds a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. G's PEG compares to its industry's average PEG of 2.66. Over the last 12 months, G's PEG has been as high as 1.50 and as low as 0.97, with a median of 1.33.
Finally, investors should note that G has a P/CF ratio of 9.42. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.44. Within the past 12 months, G's P/CF has been as high as 13.45 and as low as 7.46, with a median of 8.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Genpact is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, G feels like a great value stock at the moment.