Back to top

Image: Bigstock

Are Investors Undervaluing EZCORP (EZPW) Right Now?

Read MoreHide Full Article

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.

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.

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 value investors might notice is EZCORP (EZPW - Free Report) . EZPW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EZPW has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.68.

Finally, investors should note that EZPW has a P/CF ratio of 11.11. 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 28.96. Over the past 52 weeks, EZPW's P/CF has been as high as 11.22 and as low as 7.77, with a median of 8.94.

Value investors will likely look at more than just these metrics, but the above data helps show that EZCORP is likely undervalued currently. And when considering the strength of its earnings outlook, EZPW sticks out as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


EZCORP, Inc. (EZPW) - free report >>

Published in