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Are Investors Undervaluing Prog Holdings (PRG) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company value investors might notice is Prog Holdings (PRG - Free Report) . PRG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.95, while its industry has an average P/E of 9.95. Over the past year, PRG's Forward P/E has been as high as 13.68 and as low as 6.82, with a median of 10.89.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PRG has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.48.

These are only a few of the key metrics included in Prog Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PRG looks like an impressive value stock at the moment.


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