We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Green Dot (GDOT) Right Now?
Read MoreHide Full Article
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 Green Dot (GDOT - Free Report) . GDOT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 21.15. Over the last 12 months, GDOT's Forward P/E has been as high as 11.46 and as low as 6.40, with a median of 8.57.
Finally, our model also underscores that GDOT has a P/CF ratio of 6.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GDOT's current P/CF looks attractive when compared to its industry's average P/CF of 22.19. GDOT's P/CF has been as high as 11.51 and as low as 5.53, with a median of 7.69, all within the past year.
Another great Financial Transaction Services stock you could consider is Paysafe Limited (PSFE - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Paysafe Limited is trading at a forward earnings multiple of 16.19 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 21.15 and average PEG ratio of 1.37.
Over the last 12 months, PSFE's P/E has been as high as 1,313.38, as low as -328.50, with a median of 14.08, and its PEG ratio has been as high as 130.55, as low as -32.65, with a median of 1.26.
Paysafe Limited also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 5.82. Over the past year, its P/B ratio has been as high as 1.89, as low as 0.83, with a median of 1.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Green Dot and Paysafe Limited are likely undervalued currently. And when considering the strength of its earnings outlook, GDOT and PSFE sticks out 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:
Image: Bigstock
Are Investors Undervaluing Green Dot (GDOT) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 Green Dot (GDOT - Free Report) . GDOT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 21.15. Over the last 12 months, GDOT's Forward P/E has been as high as 11.46 and as low as 6.40, with a median of 8.57.
Finally, our model also underscores that GDOT has a P/CF ratio of 6.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GDOT's current P/CF looks attractive when compared to its industry's average P/CF of 22.19. GDOT's P/CF has been as high as 11.51 and as low as 5.53, with a median of 7.69, all within the past year.
Another great Financial Transaction Services stock you could consider is Paysafe Limited (PSFE - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Paysafe Limited is trading at a forward earnings multiple of 16.19 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 21.15 and average PEG ratio of 1.37.
Over the last 12 months, PSFE's P/E has been as high as 1,313.38, as low as -328.50, with a median of 14.08, and its PEG ratio has been as high as 130.55, as low as -32.65, with a median of 1.26.
Paysafe Limited also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 5.82. Over the past year, its P/B ratio has been as high as 1.89, as low as 0.83, with a median of 1.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Green Dot and Paysafe Limited are likely undervalued currently. And when considering the strength of its earnings outlook, GDOT and PSFE sticks out as one of the market's strongest value stocks.