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.
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 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.
Newmark Group (NMRK) is a stock many investors are watching right now. NMRK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.85 right now. For comparison, its industry sports an average P/E of 13.90. NMRK's Forward P/E has been as high as 12.04 and as low as 6.79, with a median of 9.61, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. NMRK has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.68.
These are only a few of the key metrics included in Newmark 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, NMRK looks like an impressive value stock at the moment.
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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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