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Are Investors Undervaluing Evertec (EVTC) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Evertec (EVTC - Free Report) . EVTC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 22.28. EVTC's Forward P/E has been as high as 11.49 and as low as 9.27, with a median of 10.38, all within the past year.
Investors should also note that EVTC holds a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EVTC's industry currently sports an average PEG of 1.85. EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.32, all within the past year.
Another valuation metric that we should highlight is EVTC's P/B ratio of 3.76. 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 stock's P/B looks solid versus its industry's average P/B of 8.73. EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.31, over the past year.
Finally, investors should note that EVTC has a P/CF ratio of 8.79. 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 stock's P/CF looks attractive against its industry's average P/CF of 17.95. EVTC's P/CF has been as high as 11.20 and as low as 7.89, with a median of 9.07, all within the past year.
If you're looking for another solid Financial Transaction Services value stock, take a look at WEX (WEX - Free Report) . WEX is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of WEX are currently trading at a forward earnings multiple of 10.16 and a PEG ratio of 1.28 compared to its industry's P/E and PEG ratios of 22.28 and 1.85, respectively.
Over the past year, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.15; its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29 during the same time period.
Additionally, WEX has a P/B ratio of 5.97 while its industry's price-to-book ratio sits at 8.73. For WEX, this valuation metric has been as high as 6.84, as low as 3.96, with a median of 4.91 over the past year.
These are only a few of the key metrics included in Evertec and WEX strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC and WEX look like an impressive value stock at the moment.
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Are Investors Undervaluing Evertec (EVTC) 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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Evertec (EVTC - Free Report) . EVTC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 22.28. EVTC's Forward P/E has been as high as 11.49 and as low as 9.27, with a median of 10.38, all within the past year.
Investors should also note that EVTC holds a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EVTC's industry currently sports an average PEG of 1.85. EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.32, all within the past year.
Another valuation metric that we should highlight is EVTC's P/B ratio of 3.76. 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 stock's P/B looks solid versus its industry's average P/B of 8.73. EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.31, over the past year.
Finally, investors should note that EVTC has a P/CF ratio of 8.79. 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 stock's P/CF looks attractive against its industry's average P/CF of 17.95. EVTC's P/CF has been as high as 11.20 and as low as 7.89, with a median of 9.07, all within the past year.
If you're looking for another solid Financial Transaction Services value stock, take a look at WEX (WEX - Free Report) . WEX is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of WEX are currently trading at a forward earnings multiple of 10.16 and a PEG ratio of 1.28 compared to its industry's P/E and PEG ratios of 22.28 and 1.85, respectively.
Over the past year, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.15; its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29 during the same time period.
Additionally, WEX has a P/B ratio of 5.97 while its industry's price-to-book ratio sits at 8.73. For WEX, this valuation metric has been as high as 6.84, as low as 3.96, with a median of 4.91 over the past year.
These are only a few of the key metrics included in Evertec and WEX strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC and WEX look like an impressive value stock at the moment.