Is WNS (WNS) Stock Undervalued Right Now?

WNS

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is WNS (WNS - Free Report) . WNS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.37, while its industry has an average P/E of 21.33. Over the past year, WNS's Forward P/E has been as high as 24.06 and as low as 11.79, with a median of 14.82.

Investors will also notice that WNS has a PEG ratio of 1.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WNS's industry has an average PEG of 1.86 right now. Within the past year, WNS's PEG has been as high as 1.90 and as low as 0.91, with a median of 1.26.

Finally, investors should note that WNS has a P/CF ratio of 11.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. WNS's current P/CF looks attractive when compared to its industry's average P/CF of 23.24. Within the past 12 months, WNS's P/CF has been as high as 23.07 and as low as 10.83, with a median of 15.63.

These are only a few of the key metrics included in WNS'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, WNS looks like an impressive value stock at the moment.

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