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Is Evertec (EVTC) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 value investors might notice 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 P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 20.95. Over the past 52 weeks, EVTC's Forward P/E has been as high as 11.49 and as low as 9.26, with a median of 10.35.

EVTC is also sporting a PEG ratio of 1.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EVTC's PEG compares to its industry's average PEG of 1.82. Over the past 52 weeks, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.33.

Another valuation metric that we should highlight is EVTC's P/B ratio of 3.5. 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. EVTC's current P/B looks attractive when compared to its industry's average P/B of 8.32. EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27, over the past year.

Finally, investors will want to recognize that EVTC has a P/CF ratio of 8.19. 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 15.01. Over the past year, EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96.

Another great Financial Transaction Services stock you could consider is WEX (WEX - Free Report) , which 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 9.68 and a PEG ratio of 1.22 compared to its industry's P/E and PEG ratios of 20.95 and 1.82, respectively.

WEX's Forward P/E has been as high as 12.19 and as low as 7.27, with a median of 10.12. During the same time period, its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29.

WEX also has a P/B ratio of 5.72 compared to its industry's price-to-book ratio of 8.32. Over the past year, its P/B ratio has been as high as 6.84, as low as 3.96, with a median of 5.05.

These are just a handful of the figures considered in Evertec and WEX's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EVTC and WEX is an impressive value stock right now.


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