Back to top

Image: Bigstock

Are Investors Undervaluing Pathward Financial Inc. (CASH) Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Pathward Financial Inc. (CASH - Free Report) . CASH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.90, while its industry has an average P/E of 9.47. Over the last 12 months, CASH's Forward P/E has been as high as 10.40 and as low as 5.71, with a median of 7.48.

Finally, our model also underscores that CASH has a P/CF ratio of 7.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.65. Over the past year, CASH's P/CF has been as high as 7.99 and as low as 4.33, with a median of 5.58.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pathward Financial, Inc. (CASH) - free report >>

Published in