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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Evertec (EVTC). EVTC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.42. This compares to its industry's average Forward P/E of 20.22. 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 currently sports an average PEG of 1.76. Over the last 12 months, 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 is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.44. 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, investors should note 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 14.60. EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Evertec is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EVTC feels like a great 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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