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Are Investors Undervaluing Cardtronics (CATM) Right Now?

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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.

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.

One company to watch right now is Cardtronics (CATM - Free Report) . CATM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.80, while its industry has an average P/E of 24.49. CATM's Forward P/E has been as high as 20.86 and as low as 6.41, with a median of 15.05, all within the past year.

Investors should also note that CATM holds a PEG ratio of 1.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CATM's industry has an average PEG of 1.62 right now. Over the past 52 weeks, CATM's PEG has been as high as 1.87 and as low as 0.50, with a median of 1.35.

Another notable valuation metric for CATM is its P/B ratio of 3.66. The P/B is a method of comparing a stock's market value to 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 10.65. Over the past year, CATM's P/B has been as high as 4.41 and as low as 2.07, with a median of 2.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardtronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CATM feels like a great value stock at the moment.




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