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, 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Enova International (ENVA). ENVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 8.02. Over the last 12 months, ENVA's Forward P/E has been as high as 10.85 and as low as 6.47, with a median of 8.44.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ENVA has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.26.
These are just a handful of the figures considered in Enova International'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 ENVA is an impressive value stock right now.
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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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