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Is Ezcorp (EZPW) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 Ezcorp (EZPW - Free Report) . EZPW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for EZPW is its P/B ratio of 0.81. 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. This company's current P/B looks solid when compared to its industry's average P/B of 0.94. EZPW's P/B has been as high as 1.18 and as low as 0.56, with a median of 0.78, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. EZPW has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.38.

Value investors will likely look at more than just these metrics, but the above data helps show that Ezcorp is likely undervalued currently. And when considering the strength of its earnings outlook, EZPW sticks out at as one of the market's strongest value stocks.


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