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Are Investors Undervaluing EZCORP (EZPW) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is EZCORP (EZPW - Free Report) . EZPW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that EZPW has a P/B ratio of 0.63. 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 stock's P/B looks attractive against its industry's average P/B of 0.83. Within the past 52 weeks, EZPW's P/B has been as high as 0.72 and as low as 0.47, with a median of 0.60.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.53. This compares to its industry's average P/S of 1.2.

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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