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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is EZCORP (EZPW - Free Report) . EZPW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
EZPW is also sporting a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EZPW's industry has an average PEG of 0.51 right now. Within the past year, EZPW's PEG has been as high as 0.32 and as low as 0.26, with a median of 0.29.
Another valuation metric that we should highlight is EZPW's P/B ratio of 0.72. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.93. Over the past 12 months, EZPW's P/B has been as high as 0.81 and as low as 0.57, with a median of 0.65.
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. EZPW has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.46.
These are just a handful of the figures considered in EZCORP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EZPW is an impressive value stock right now.
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Should Value Investors Buy EZCORP (EZPW) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is EZCORP (EZPW - Free Report) . EZPW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
EZPW is also sporting a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EZPW's industry has an average PEG of 0.51 right now. Within the past year, EZPW's PEG has been as high as 0.32 and as low as 0.26, with a median of 0.29.
Another valuation metric that we should highlight is EZPW's P/B ratio of 0.72. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.93. Over the past 12 months, EZPW's P/B has been as high as 0.81 and as low as 0.57, with a median of 0.65.
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. EZPW has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.46.
These are just a handful of the figures considered in EZCORP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EZPW is an impressive value stock right now.