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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 WEX (WEX - Free Report) . WEX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.59, while its industry has an average P/E of 21.57. Over the past 52 weeks, WEX's Forward P/E has been as high as 12.19 and as low as 7.27, with a median of 10.13.
We also note that WEX holds a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WEX's industry currently sports an average PEG of 1.79. Over the last 12 months, WEX's PEG has been as high as 2.61 and as low as 0.78, with a median of 1.27.
We should also highlight that WEX has a P/B ratio of 6.17. The P/B ratio pits a stock's market value against 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 8.55. Within the past 52 weeks, WEX's P/B has been as high as 6.84 and as low as 3.96, with a median of 4.82.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WEX has a P/S ratio of 2.31. This compares to its industry's average P/S of 2.7.
Finally, investors will want to recognize that WEX has a P/CF ratio of 9.54. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.73. Over the past 52 weeks, WEX's P/CF has been as high as 16.12 and as low as 6.99, with a median of 10.02.
Value investors will likely look at more than just these metrics, but the above data helps show that WEX is likely undervalued currently. And when considering the strength of its earnings outlook, WEX sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing WEX (WEX) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 WEX (WEX - Free Report) . WEX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.59, while its industry has an average P/E of 21.57. Over the past 52 weeks, WEX's Forward P/E has been as high as 12.19 and as low as 7.27, with a median of 10.13.
We also note that WEX holds a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WEX's industry currently sports an average PEG of 1.79. Over the last 12 months, WEX's PEG has been as high as 2.61 and as low as 0.78, with a median of 1.27.
We should also highlight that WEX has a P/B ratio of 6.17. The P/B ratio pits a stock's market value against 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 8.55. Within the past 52 weeks, WEX's P/B has been as high as 6.84 and as low as 3.96, with a median of 4.82.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WEX has a P/S ratio of 2.31. This compares to its industry's average P/S of 2.7.
Finally, investors will want to recognize that WEX has a P/CF ratio of 9.54. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.73. Over the past 52 weeks, WEX's P/CF has been as high as 16.12 and as low as 6.99, with a median of 10.02.
Value investors will likely look at more than just these metrics, but the above data helps show that WEX is likely undervalued currently. And when considering the strength of its earnings outlook, WEX sticks out as one of the market's strongest value stocks.