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Is Greif (GEF) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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.

Greif (GEF - Free Report) is a stock many investors are watching right now. GEF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.93. This compares to its industry's average Forward P/E of 15.35. Over the last 12 months, GEF's Forward P/E has been as high as 19.53 and as low as 13.74, with a median of 16.36.

Investors should also recognize that GEF has a P/B ratio of 2.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.64. Over the past 12 months, GEF's P/B has been as high as 2.96 and as low as 2.12, with a median of 2.52.

Finally, we should also recognize that GEF has a P/CF ratio of 8.43. 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 12.15. Over the past 52 weeks, GEF's P/CF has been as high as 13.43 and as low as 8.17, with a median of 10.36.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Greif is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GEF feels like a great value stock at the moment.


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