Should Value Investors Buy BGC Group, Inc. (BGC) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is BGC Group, Inc. (BGC). BGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.56 right now. For comparison, its industry sports an average P/E of 12.69. Over the past year, BGC's Forward P/E has been as high as 10.94 and as low as 7.15, with a median of 9.

Investors should also note that BGC holds a PEG ratio of 0.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BGC's PEG compares to its industry's average PEG of 0.90. Within the past year, BGC's PEG has been as high as 0.35 and as low as 0.30, with a median of 0.32.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BGC has a P/S ratio of 1.83. This compares to its industry's average P/S of 1.87.

Value investors will likely look at more than just these metrics, but the above data helps show that BGC Group, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, BGC sticks out at as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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