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Are Investors Undervaluing Evertec (EVTC) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on 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 17.81. 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.

Another valuation metric that we should highlight is EVTC's P/B ratio of 3.5. 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 7.96. Over the past year, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27.

Finally, we should also recognize that EVTC has a P/CF ratio of 8.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EVTC's P/CF compares to its industry's average P/CF of 13.34. Over the past 52 weeks, EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96.

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

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