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.
Enova International (ENVA) is a stock many investors are watching right now. ENVA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.01, while its industry has an average P/E of 10.28. Over the last 12 months, ENVA's Forward P/E has been as high as 10.85 and as low as 6.77, with a median of 8.51.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ENVA has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Enova International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENVA feels like a great value stock at the moment.
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Enova International, Inc. (ENVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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