That’s why Genpact (G) is a strong value stock

Making full use of the opportunities offered by the stock market and investing with confidence are common goals for both new and old investors.

Achieving these goals is made easier by the Zacks Style Scores, a unique set of guidelines that rate stocks based on popular investment methodologies, namely value, growth and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which can beat the market over the long term.

Why investors should pay attention to this value stock

Unlike growth or momentum investors, value investors are concerned with finding good stocks at good prices and figuring out which companies are trading below their true value before the broader market notices. The Value Style Score uses metrics such as P/E, PEG, price-to-sales and price-to-cash flow to select the most attractive and cheapest stocks.

Genpact (G)

Based in Hamilton, Bermuda, Genpact manages business processes for companies around the world. The company combines process expertise, information technology and analytical capabilities with operational knowledge and experience across multiple industries to provide a wide range of services using its global delivery platform.

G has a Zacks Rank of 3 (Hold), a Value Style Score of A and a VGM Score of B. Compared to the Outsourcing industry’s P/E of 16.6, Genpact shares are trading at a forward P/E of 10.3. G also has a PEG ratio of 1.3, a price-to-cash-flow ratio of 9.9 and a price-to-sales ratio of 1.2.

Many value investors also pay close attention to a company’s earnings. For G, five analysts have upgraded their earnings estimates in the past 60 days, and the Zacks Consensus Estimate has increased $0.01 to $3.02 per share for 2024. On a per-share basis, G has an average earnings surprise of 5.9%.

Given strong valuation and earnings metrics, a good Zacks Rank, and top-notch Value and VGM Style Scores, investors should seriously consider adding G to their portfolio.

The story goes on

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