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Are Investors Undervaluing Geo Group (GEO) 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.
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.
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 stock to keep an eye on is Geo Group (GEO - Free Report) . GEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.14 right now. For comparison, its industry sports an average P/E of 17.13. Over the past 52 weeks, GEO's Forward P/E has been as high as 13.63 and as low as 8.14, with a median of 11.14.
GEO is also sporting a PEG ratio of 1.36. 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. GEO's PEG compares to its industry's average PEG of 2.79. Over the past 52 weeks, GEO's PEG has been as high as 2.27 and as low as 1.36, with a median of 1.86.
Finally, investors will want to recognize that GEO has a P/CF ratio of 9.18. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.64. Over the past year, GEO's P/CF has been as high as 11.94 and as low as 7.84, with a median of 9.75.
These are just a handful of the figures considered in Geo Group'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 GEO is an impressive value stock right now.
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Are Investors Undervaluing Geo Group (GEO) Right Now?
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.
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.
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 stock to keep an eye on is Geo Group (GEO - Free Report) . GEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.14 right now. For comparison, its industry sports an average P/E of 17.13. Over the past 52 weeks, GEO's Forward P/E has been as high as 13.63 and as low as 8.14, with a median of 11.14.
GEO is also sporting a PEG ratio of 1.36. 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. GEO's PEG compares to its industry's average PEG of 2.79. Over the past 52 weeks, GEO's PEG has been as high as 2.27 and as low as 1.36, with a median of 1.86.
Finally, investors will want to recognize that GEO has a P/CF ratio of 9.18. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.64. Over the past year, GEO's P/CF has been as high as 11.94 and as low as 7.84, with a median of 9.75.
These are just a handful of the figures considered in Geo Group'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 GEO is an impressive value stock right now.