While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Cardtronics is a stock many investors are watching right now. CATM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.08 right now. For comparison, its industry sports an average P/E of 19.87. CATM's Forward P/E has been as high as 20.86 and as low as 6.41, with a median of 15.90, all within the past year.
We also note that CATM holds a PEG ratio of 1.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CATM's PEG compares to its industry's average PEG of 1.33. Over the last 12 months, CATM's PEG has been as high as 1.87 and as low as 0.53, with a median of 1.40.
Another valuation metric that we should highlight is CATM's P/B ratio of 3.03. The P/B ratio pits a stock's market value against 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 8.35. Over the past year, CATM's P/B has been as high as 4.41 and as low as 2.17, with a median of 3.04.
Finally, investors will want to recognize that CATM has a P/CF ratio of 5.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CATM's current P/CF looks attractive when compared to its industry's average P/CF of 20.46. Over the past 52 weeks, CATM's P/CF has been as high as 7.71 and as low as 3.48, with a median of 5.22.
Value investors will likely look at more than just these metrics, but the above data helps show that Cardtronics is likely undervalued currently. And when considering the strength of its earnings outlook, CATM sticks out at as one of the market's strongest value stocks.
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Is Cardtronics (CATM) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Cardtronics is a stock many investors are watching right now. CATM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.08 right now. For comparison, its industry sports an average P/E of 19.87. CATM's Forward P/E has been as high as 20.86 and as low as 6.41, with a median of 15.90, all within the past year.
We also note that CATM holds a PEG ratio of 1.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CATM's PEG compares to its industry's average PEG of 1.33. Over the last 12 months, CATM's PEG has been as high as 1.87 and as low as 0.53, with a median of 1.40.
Another valuation metric that we should highlight is CATM's P/B ratio of 3.03. The P/B ratio pits a stock's market value against 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 8.35. Over the past year, CATM's P/B has been as high as 4.41 and as low as 2.17, with a median of 3.04.
Finally, investors will want to recognize that CATM has a P/CF ratio of 5.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CATM's current P/CF looks attractive when compared to its industry's average P/CF of 20.46. Over the past 52 weeks, CATM's P/CF has been as high as 7.71 and as low as 3.48, with a median of 5.22.
Value investors will likely look at more than just these metrics, but the above data helps show that Cardtronics is likely undervalued currently. And when considering the strength of its earnings outlook, CATM sticks out at as one of the market's strongest value stocks.