Back to top

Image: Bigstock

Should Value Investors Buy Laureate Education (LAUR) Stock?

Read MoreHide Full Article

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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Laureate Education (LAUR - Free Report) is a stock many investors are watching right now. LAUR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We also note that LAUR holds a PEG ratio of 0.60. 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. LAUR's industry currently sports an average PEG of 1.42. Within the past year, LAUR's PEG has been as high as 2.19 and as low as 0.33, with a median of 0.93.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LAUR has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.

Value investors will likely look at more than just these metrics, but the above data helps show that Laureate Education is likely undervalued currently. And when considering the strength of its earnings outlook, LAUR sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Laureate Education (LAUR) - free report >>

Published in