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Are Investors Undervaluing Cardtronics (CATM) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Cardtronics is a stock many investors are watching right now. CATM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.05, which compares to its industry's average of 26.11. Over the past 52 weeks, CATM's Forward P/E has been as high as 18.82 and as low as 11.29, with a median of 14.28.

Finally, investors should note that CATM has a P/CF ratio of 6.54. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 25.05. Over the past year, CATM's P/CF has been as high as 8.49 and as low as 5.08, with a median of 6.73.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardtronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CATM feels like a great value stock at the moment.

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