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Is Four Seasons Education (Cayman) Inc. Unsponsored ADR (FEDU) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Four Seasons Education (Cayman) Inc. Unsponsored ADR (FEDU - Free Report) . FEDU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.24 right now. For comparison, its industry sports an average P/E of 28.58. Over the last 12 months, FEDU's Forward P/E has been as high as 52.25 and as low as 3.18, with a median of 18.18.

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. FEDU has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.13.

Finally, investors will want to recognize that FEDU has a P/CF ratio of 9.10. 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. FEDU's current P/CF looks attractive when compared to its industry's average P/CF of 30.04. Over the past 52 weeks, FEDU's P/CF has been as high as 11.32 and as low as 7.79, with a median of 10.22.

These are only a few of the key metrics included in Four Seasons Education (Cayman) Inc. Unsponsored ADR's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FEDU looks like an impressive value stock at the moment.


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