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Is ePlus (PLUS) a Great Value Stock Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 ePlus (PLUS - Free Report) . PLUS 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 14.09 right now. For comparison, its industry sports an average P/E of 21.73. Over the last 12 months, PLUS's Forward P/E has been as high as 17.91 and as low as 12.44, with a median of 14.67.
Finally, we should also recognize that PLUS has a P/CF ratio of 13.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 50.33. Over the past year, PLUS's P/CF has been as high as 16.68 and as low as 11.05, with a median of 13.22.
Value investors will likely look at more than just these metrics, but the above data helps show that ePlus is likely undervalued currently. And when considering the strength of its earnings outlook, PLUS sticks out at as one of the market's strongest value stocks.