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Is Perdoceo Education (PRDO) Stock Undervalued Right Now?

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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.

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.

One stock to keep an eye on is Perdoceo Education (PRDO - Free Report) . PRDO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors should also note that PRDO holds a PEG ratio of 0.65. 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. PRDO's PEG compares to its industry's average PEG of 1.40. Over the last 12 months, PRDO's PEG has been as high as 1.31 and as low as 0.36, with a median of 0.84.

We should also highlight that PRDO has a P/B ratio of 2.40. Investors use the P/B ratio to look at a stock's market value versus 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 6.71. Within the past 52 weeks, PRDO's P/B has been as high as 4.10 and as low as 1.30, with a median of 3.

Finally, our model also underscores that PRDO has a P/CF ratio of 12.61. 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. PRDO's P/CF compares to its industry's average P/CF of 35.72. Within the past 12 months, PRDO's P/CF has been as high as 25.06 and as low as 7.25, with a median of 18.07.

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


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