The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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 Paramount Group (PGRE). PGRE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PGRE has a P/S ratio of 1.93. This compares to its industry's average P/S of 3.92.
Finally, our model also underscores that PGRE has a P/CF ratio of 9.91. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.28. Over the past year, PGRE's P/CF has been as high as 26.51 and as low as 4.39, with a median of 8.10.
These are only a few of the key metrics included in Paramount Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PGRE looks like an impressive value stock at the moment.
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Paramount Group, Inc. (PGRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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