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.
One stock to keep an eye on is Newmark Group (NMRK). NMRK is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.71, while its industry has an average P/E of 16.98. NMRK's Forward P/E has been as high as 12.04 and as low as 6.63, with a median of 9.61, all within the past year.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NMRK has a P/S ratio of 0.8. This compares to its industry's average P/S of 2.11.
Finally, our model also underscores that NMRK has a P/CF ratio of 5.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.48. Within the past 12 months, NMRK's P/CF has been as high as 12.61 and as low as 4.80, with a median of 9.22.
These are just a handful of the figures considered in Newmark 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 NMRK is an impressive value stock right now.
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Newmark Group, Inc. (NMRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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