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Should Value Investors Buy Repay (RPAY) 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Repay (RPAY - Free Report) is a stock many investors are watching right now. RPAY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.21 right now. For comparison, its industry sports an average P/E of 16.25. Over the past 52 weeks, RPAY's Forward P/E has been as high as 9.10 and as low as 3.96, with a median of 6.48.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RPAY has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.73.

These are only a few of the key metrics included in Repay's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RPAY looks like an impressive value stock at the moment.

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