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Should Value Investors Buy Enova International (ENVA) Stock?
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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, 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 Enova International (ENVA - Free Report) . ENVA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.7, while its industry has an average P/E of 10.52. Over the past 52 weeks, ENVA's Forward P/E has been as high as 10.85 and as low as 7.10, with a median of 8.57.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ENVA has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.58.
Finally, our model also underscores that ENVA has a P/CF ratio of 9.98. 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 stock's P/CF looks attractive against its industry's average P/CF of 28.68. Over the past 52 weeks, ENVA's P/CF has been as high as 12.59 and as low as 8.04, with a median of 9.93.
Investors could also keep in mind Prog Holdings (PRG - Free Report) , another Financial - Consumer Loans stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Additionally, Prog Holdings has a P/B ratio of 2.15 while its industry's price-to-book ratio sits at 0.85. For PRG, this valuation metric has been as high as 3.66, as low as 1.48, with a median of 2.03 over the past year.
These are only a few of the key metrics included in Enova International and Prog Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ENVA and PRG look like an impressive value stock at the moment.
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Should Value Investors Buy Enova International (ENVA) Stock?
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, 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 Enova International (ENVA - Free Report) . ENVA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.7, while its industry has an average P/E of 10.52. Over the past 52 weeks, ENVA's Forward P/E has been as high as 10.85 and as low as 7.10, with a median of 8.57.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ENVA has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.58.
Finally, our model also underscores that ENVA has a P/CF ratio of 9.98. 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 stock's P/CF looks attractive against its industry's average P/CF of 28.68. Over the past 52 weeks, ENVA's P/CF has been as high as 12.59 and as low as 8.04, with a median of 9.93.
Investors could also keep in mind Prog Holdings (PRG - Free Report) , another Financial - Consumer Loans stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Additionally, Prog Holdings has a P/B ratio of 2.15 while its industry's price-to-book ratio sits at 0.85. For PRG, this valuation metric has been as high as 3.66, as low as 1.48, with a median of 2.03 over the past year.
These are only a few of the key metrics included in Enova International and Prog Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ENVA and PRG look like an impressive value stock at the moment.