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Are Investors Undervaluing Repay (RPAY) 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.

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.

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 to watch right now is Repay (RPAY - Free Report) . RPAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.82. This compares to its industry's average Forward P/E of 21.43. Over the past year, RPAY's Forward P/E has been as high as 14.65 and as low as 4.94, with a median of 9.96.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RPAY has a P/S ratio of 1.99. This compares to its industry's average P/S of 2.87.

Investors could also keep in mind Usio (USIO - Free Report) , an Financial Transaction Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Usio has a P/B ratio of 3.49 while its industry's price-to-book ratio sits at 6.80. For USIO, this valuation metric has been as high as 4.54, as low as 2.08, with a median of 3.42 over the past year.

These are only a few of the key metrics included in Repay and Usio strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RPAY and USIO look like an impressive value stock at the moment.


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