Yahoo Finance Is Global Net Lease (GNL) Stock Undervalued Right Now?
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, 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Global Net Lease (GNL). GNL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.33, while its industry has an average P/E of 14.57. Over the past year, GNL's Forward P/E has been as high as 7.24 and as low as 4.40, with a median of 5.59.
We also note that GNL holds a PEG ratio of 0.89. 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. GNL's PEG compares to its industry's average PEG of 1.99. Within the past year, GNL's PEG has been as high as 1.21 and as low as 0.73, with a median of 0.93.
We should also highlight that GNL has a P/B ratio of 0.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GNL's current P/B looks attractive when compared to its industry's average P/B of 1.69. Over the past 12 months, GNL's P/B has been as high as 0.88 and as low as 0.60, with a median of 0.72.
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. GNL has a P/S ratio of 2.69. This compares to its industry's average P/S of 4.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Net Lease is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GNL feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global Net Lease, Inc. (GNL) : Free Stock Analysis Report
