While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 Cushman & Wakefield (CWK). CWK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.93, while its industry has an average P/E of 14.22. Over the past year, CWK's Forward P/E has been as high as 13.30 and as low as 5.43, with a median of 10.80.
Finally, we should also recognize that CWK has a P/CF ratio of 5.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CWK's current P/CF looks attractive when compared to its industry's average P/CF of 6.90. CWK's P/CF has been as high as 21.79 and as low as 5.42, with a median of 10.81, all within the past year.
Investors could also keep in mind Newmark Group (NMRK), an Real Estate - Operations stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Newmark Group are currently trading at a forward earnings multiple of 4.95 and a PEG ratio of 0.49 compared to its industry's P/E and PEG ratios of 14.22 and 1.80, respectively.
Over the last 12 months, NMRK's P/E has been as high as 12.27, as low as 4.53, with a median of 9.20, and its PEG ratio has been as high as 1.23, as low as 0.45, with a median of 0.92.
Furthermore, Newmark Group holds a P/B ratio of 1.13 and its industry's price-to-book ratio is 0.58. NMRK's P/B has been as high as 2.28, as low as 1.03, with a median of 1.75 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cushman & Wakefield and Newmark Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CWK and NMRK feels like a great value stock at the moment.
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Cushman & Wakefield PLC (CWK): Free Stock Analysis Report
Newmark Group, Inc. (NMRK): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
