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Should Value Investors Buy Corpay, Inc. (CPAY) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Corpay, Inc. (CPAY - Free Report) . CPAY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.84, while its industry has an average P/E of 16.16. CPAY's Forward P/E has been as high as 17.89 and as low as 12.84, with a median of 15.38, all within the past year.
Another valuation metric that we should highlight is CPAY's P/B ratio of 5.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.51. Over the past 12 months, CPAY's P/B has been as high as 8.63 and as low as 5.36, with a median of 7.28.
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.
WEX is trading at a forward earnings multiple of 9.68 at the moment, with a PEG ratio of 1.22. This compares to its industry's average P/E of 16.16 and average PEG ratio of 0.92.
Over the past year, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.12; 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.
Furthermore, WEX holds a P/B ratio of 5.72 and its industry's price-to-book ratio is 6.51. WEX's P/B has been as high as 6.84, as low as 3.96, with a median of 5.05 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Corpay, Inc. and WEX are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPAY and WEX feels like a great value stock at the moment.
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Should Value Investors Buy Corpay, Inc. (CPAY) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Corpay, Inc. (CPAY - Free Report) . CPAY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.84, while its industry has an average P/E of 16.16. CPAY's Forward P/E has been as high as 17.89 and as low as 12.84, with a median of 15.38, all within the past year.
Another valuation metric that we should highlight is CPAY's P/B ratio of 5.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.51. Over the past 12 months, CPAY's P/B has been as high as 8.63 and as low as 5.36, with a median of 7.28.
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.
WEX is trading at a forward earnings multiple of 9.68 at the moment, with a PEG ratio of 1.22. This compares to its industry's average P/E of 16.16 and average PEG ratio of 0.92.
Over the past year, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.12; 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.
Furthermore, WEX holds a P/B ratio of 5.72 and its industry's price-to-book ratio is 6.51. WEX's P/B has been as high as 6.84, as low as 3.96, with a median of 5.05 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Corpay, Inc. and WEX are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPAY and WEX feels like a great value stock at the moment.