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Should Value Investors Buy Euronet Worldwide (EEFT) Stock?

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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.

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.

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.

Euronet Worldwide (EEFT - Free Report) is a stock many investors are watching right now. EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.75 right now. For comparison, its industry sports an average P/E of 13.20. Over the past 52 weeks, EEFT's Forward P/E has been as high as 15.10 and as low as 9.29, with a median of 12.34.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EEFT has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.82.

Finally, investors will want to recognize that EEFT has a P/CF ratio of 13.09. 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 14.16. 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 12.19.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Euronet Worldwide is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EEFT feels like a great value stock at the moment.


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