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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
City Office REIT (CIO) is a stock many investors are watching right now. CIO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that CIO holds a PEG ratio of 0.73. 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. CIO's PEG compares to its industry's average PEG of 1.93. Over the last 12 months, CIO's PEG has been as high as 0.94 and as low as 0.63, with a median of 0.78.
Finally, we should also recognize that CIO has a P/CF ratio of 4.59. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.80. Over the past year, CIO's P/CF has been as high as 5.17 and as low as 2.99, with a median of 4.15.
Value investors will likely look at more than just these metrics, but the above data helps show that City Office REIT is likely undervalued currently. And when considering the strength of its earnings outlook, CIO sticks out at as one of the market's strongest value stocks.
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City Office REIT, Inc. (CIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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