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Are Investors Undervaluing Euronet Worldwide (EEFT) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 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 12.10, while its industry has an average P/E of 12.26. 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 12.24.

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 1.3. This compares to its industry's average P/S of 1.61.

Finally, our model also underscores that EEFT has a P/CF ratio of 12.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.01. Over the past year, EEFT's P/CF has been as high as 16.76 and as low as 9.15, with a median of 12.19.

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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