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Is Pathward Financial Inc. (CASH) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Pathward Financial Inc. (CASH - Free Report) . CASH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.46 right now. For comparison, its industry sports an average P/E of 8.99. Over the past 52 weeks, CASH's Forward P/E has been as high as 12.47 and as low as 5.71, with a median of 7.49.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CASH has a P/S ratio of 2. This compares to its industry's average P/S of 2.5.

Finally, investors will want to recognize that CASH has a P/CF ratio of 5.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CASH's current P/CF looks attractive when compared to its industry's average P/CF of 8.25. CASH's P/CF has been as high as 9.34 and as low as 4.31, with a median of 5.55, all within the past year.

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


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