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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Evertec (EVTC). EVTC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 19.95. EVTC's Forward P/E has been as high as 11.49 and as low as 9.26, with a median of 10.35, all within the past year.
Investors should also note that EVTC holds a PEG ratio of 1.34. 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. EVTC's industry has an average PEG of 1.74 right now. Over the past 52 weeks, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.33.
We should also highlight that EVTC has a P/B ratio of 3.5. The P/B ratio is used to compare a stock's market value with 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 7.03. Within the past 52 weeks, EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27.
Finally, we should also recognize that EVTC has a P/CF ratio of 8.19. 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. EVTC's current P/CF looks attractive when compared to its industry's average P/CF of 14.83. Within the past 12 months, EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96.
These are only a few of the key metrics included in Evertec's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC looks like an impressive value stock at the moment.
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Evertec, Inc. (EVTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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