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Are Investors Undervaluing Euronet Worldwide (EEFT) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Euronet Worldwide (EEFT - Free Report) . EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.31, while its industry has an average P/E of 12.79. EEFT's Forward P/E has been as high as 15.73 and as low as 9.29, with a median of 12.35, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. EEFT has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.73.

Finally, our model also underscores that EEFT has a P/CF ratio of 12.81. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EEFT's current P/CF looks attractive when compared to its industry's average P/CF of 14.52. Over the past 52 weeks, EEFT's P/CF has been as high as 16.76 and as low as 9.15, with a median of 12.62.

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


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