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Should Value Investors Buy Perdoceo Education (PRDO) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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.

Perdoceo Education (PRDO - Free Report) is a stock many investors are watching right now. PRDO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors should also note that PRDO holds a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PRDO's industry currently sports an average PEG of 1.37. PRDO's PEG has been as high as 1.31 and as low as 0.36, with a median of 0.82, all within the past year.

Investors should also recognize that PRDO has a P/B ratio of 2.54. 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 6.71. Over the past 12 months, PRDO's P/B has been as high as 4.10 and as low as 1.30, with a median of 2.94.

Finally, we should also recognize that PRDO has a P/CF ratio of 13.99. 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. This stock's P/CF looks attractive against its industry's average P/CF of 35.72. Over the past 52 weeks, PRDO's P/CF has been as high as 25.06 and as low as 7.25, with a median of 17.41.

These are just a handful of the figures considered in Perdoceo Education's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRDO is an impressive value stock right now.


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