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Should Value Investors Buy Everi (EVRI) Stock?

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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.

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.

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 to watch right now is Everi (EVRI - Free Report) . EVRI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for EVRI is its P/B ratio of 4.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.71. Within the past 52 weeks, EVRI's P/B has been as high as 4.66 and as low as 2.32, with a median of 4.51.

Finally, investors will want to recognize that EVRI has a P/CF ratio of 6.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVRI's current P/CF looks attractive when compared to its industry's average P/CF of 17.34. Over the past year, EVRI's P/CF has been as high as 6.72 and as low as 2.62, with a median of 6.37.

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


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