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Is Encore Capital Group (ECPG) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Encore Capital Group (ECPG - Free Report) . ECPG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.13 right now. For comparison, its industry sports an average P/E of 9.72. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 6.34.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.42.
Value investors will likely look at more than just these metrics, but the above data helps show that Encore Capital Group is likely undervalued currently. And when considering the strength of its earnings outlook, ECPG sticks out as one of the market's strongest value stocks.
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Is Encore Capital Group (ECPG) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Encore Capital Group (ECPG - Free Report) . ECPG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.13 right now. For comparison, its industry sports an average P/E of 9.72. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 6.34.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.42.
Value investors will likely look at more than just these metrics, but the above data helps show that Encore Capital Group is likely undervalued currently. And when considering the strength of its earnings outlook, ECPG sticks out as one of the market's strongest value stocks.