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Should Value Investors Buy Oportun Financial (OPRT) 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, 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.

One stock to keep an eye on is Oportun Financial (OPRT - Free Report) . OPRT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.69, while its industry has an average P/E of 13.12. Over the past year, OPRT's Forward P/E has been as high as 11.87 and as low as 3.10, with a median of 4.45.

Finally, we should also recognize that OPRT has a P/CF ratio of 8.07. 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 22.11. OPRT's P/CF has been as high as 53.49 and as low as -13.77, with a median of -1.36, all within the past year.

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

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