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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.82, while its industry has an average P/E of 22.08. Over the last 12 months, EEFT's Forward P/E has been as high as 11.98 and as low as 8.61, with a median of 10.46.

Investors will also notice that EEFT has a PEG ratio of 0.65. 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. EEFT's PEG compares to its industry's average PEG of 1.30. Within the past year, EEFT's PEG has been as high as 0.86 and as low as 0.57, with a median of 0.70.

Another notable valuation metric for EEFT is its P/B ratio of 3.45. 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 stock's P/B looks solid versus its industry's average P/B of 3.78. EEFT's P/B has been as high as 4.08 and as low as 2.90, with a median of 3.52, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EEFT has a P/S ratio of 1.13. This compares to its industry's average P/S of 2.34.

Finally, our model also underscores that EEFT has a P/CF ratio of 10.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23. Over the past 52 weeks, EEFT's P/CF has been as high as 12.53 and as low as 8.91, with a median of 10.70.

If you're looking for another solid Financial - Miscellaneous Services value stock, take a look at Grupo Financiero Banorte (GBOOY - Free Report) . GBOOY is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Grupo Financiero Banorte is trading at a forward earnings multiple of 7.50 at the moment, with a PEG ratio of 0.87. This compares to its industry's average P/E of 22.08 and average PEG ratio of 1.30.

GBOOY's price-to-earnings ratio has been as high as 8.29 and as low as 5.98, with a median of 6.77, while its PEG ratio has been as high as 0.97 and as low as 0.61, with a median of 0.74, all within the past year.

Grupo Financiero Banorte sports a P/B ratio of 1.77 as well; this compares to its industry's price-to-book ratio of 3.78. In the past 52 weeks, GBOOY's P/B has been as high as 1.94, as low as 1.29, with a median of 1.50.

These are only a few of the key metrics included in Euronet Worldwide and Grupo Financiero Banorte strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EEFT and GBOOY look like an impressive value stock at the moment.


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