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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Evertec (EVTC - Free Report) is a stock many investors are watching right now. EVTC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.42, which compares to its industry's average of 16.94. 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 stock's P/B looks attractive against its industry's average P/B of 7.60. Over the past 12 months, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27.
Finally, our model also underscores that EVTC has a P/CF ratio of 8.19. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVTC's P/CF compares to its industry's average P/CF of 12.75. 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.
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 16.94 and 1.01, respectively.
Over the last 12 months, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.12, and its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29.
WEX sports a P/B ratio of 5.72 as well; this compares to its industry's price-to-book ratio of 7.60. In the past 52 weeks, WEX's P/B has been as high as 6.84, as low as 3.96, with a median of 5.05.
These are only a few of the key metrics included in Evertec and WEX strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC and WEX look like an impressive value stock at the moment.
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Should Value Investors Buy Evertec (EVTC) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Evertec (EVTC - Free Report) is a stock many investors are watching right now. EVTC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.42, which compares to its industry's average of 16.94. 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 stock's P/B looks attractive against its industry's average P/B of 7.60. Over the past 12 months, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27.
Finally, our model also underscores that EVTC has a P/CF ratio of 8.19. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVTC's P/CF compares to its industry's average P/CF of 12.75. 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.
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 16.94 and 1.01, respectively.
Over the last 12 months, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.12, and its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29.
WEX sports a P/B ratio of 5.72 as well; this compares to its industry's price-to-book ratio of 7.60. In the past 52 weeks, WEX's P/B has been as high as 6.84, as low as 3.96, with a median of 5.05.
These are only a few of the key metrics included in Evertec and WEX strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC and WEX look like an impressive value stock at the moment.