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Are Investors Undervaluing ePlus (PLUS) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
ePlus (PLUS - Free Report) is a stock many investors are watching right now. PLUS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.19, which compares to its industry's average of 24.42. PLUS's Forward P/E has been as high as 17.91 and as low as 12.44, with a median of 14.60, all within the past year.
Finally, our model also underscores that PLUS has a P/CF ratio of 13.14. 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. PLUS's current P/CF looks attractive when compared to its industry's average P/CF of 50.13. 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 13.07.
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.