Are Investors Undervaluing City Office REIT (CIO) Right Now?

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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.City Office REIT (CIO) is a stock many investors are watching right now. CIO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.We also note that CIO holds a PEG ratio of 0.76. 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 industry currently sports an average PEG of 1.99. Over the last 12 months, CIO's PEG has been as high as 0.94 and as low as 0.53, with a median of 0.77.Finally, we should also recognize that CIO has a P/CF ratio of 4.75. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.06. Over the past 52 weeks, CIO's P/CF has been as high as 5.17 and as low as 2.69, with a median of 4.03.These figures are just a handful of the metrics value investors tend to look at, but they help show that City Office REIT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIO feels like a great value stock at the moment.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 City Office REIT, Inc. (CIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks