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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.
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.
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.
One company to watch right now is Evertec (EVTC - Free Report) . EVTC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.24 right now. For comparison, its industry sports an average P/E of 21.27. Over the last 12 months, EVTC's Forward P/E has been as high as 11.49 and as low as 9.27, with a median of 10.39.
Investors should also note that EVTC holds a PEG ratio of 1.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EVTC's PEG compares to its industry's average PEG of 1.77. Within the past year, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.30.
We should also highlight that EVTC has a P/B ratio of 3.79. The P/B is a method of comparing a stock's market value to 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 8.42. Over the past year, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.32.
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. EVTC has a P/S ratio of 2.72. This compares to its industry's average P/S of 2.73.
Finally, we should also recognize that EVTC has a P/CF ratio of 8.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EVTC's P/CF compares to its industry's average P/CF of 17.47. Over the past year, EVTC's P/CF has been as high as 11.20 and as low as 7.89, with a median of 9.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Evertec is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EVTC feels like a great value stock at the moment.
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Is Evertec (EVTC) Stock Undervalued Right Now?
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.
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.
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.
One company to watch right now is Evertec (EVTC - Free Report) . EVTC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.24 right now. For comparison, its industry sports an average P/E of 21.27. Over the last 12 months, EVTC's Forward P/E has been as high as 11.49 and as low as 9.27, with a median of 10.39.
Investors should also note that EVTC holds a PEG ratio of 1.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EVTC's PEG compares to its industry's average PEG of 1.77. Within the past year, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.30.
We should also highlight that EVTC has a P/B ratio of 3.79. The P/B is a method of comparing a stock's market value to 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 8.42. Over the past year, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.32.
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. EVTC has a P/S ratio of 2.72. This compares to its industry's average P/S of 2.73.
Finally, we should also recognize that EVTC has a P/CF ratio of 8.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EVTC's P/CF compares to its industry's average P/CF of 17.47. Over the past year, EVTC's P/CF has been as high as 11.20 and as low as 7.89, with a median of 9.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Evertec is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EVTC feels like a great value stock at the moment.