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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Newmark Group (NMRK) is a stock many investors are watching right now. NMRK is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.12, which compares to its industry's average of 12.14. NMRK's Forward P/E has been as high as 12.04 and as low as 6.63, with a median of 9.56, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NMRK has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Newmark Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NMRK feels like a great value stock at the moment.
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Newmark Group, Inc. (NMRK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).