Yahoo Finance Are Investors Undervaluing EZCORP (EZPW) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is EZCORP (EZPW). EZPW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that EZPW has a PEG ratio of 0.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EZPW's industry has an average PEG of 0.48 right now. EZPW's PEG has been as high as 0.32 and as low as 0.26, with a median of 0.29, all within the past year.
Investors should also recognize that EZPW has a P/B ratio of 0.72. 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 0.82. Over the past 12 months, EZPW's P/B has been as high as 0.81 and as low as 0.57, with a median of 0.65.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EZPW has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EZCORP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EZPW feels like a great value stock at the moment.
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EZCORP, Inc. (EZPW) : Free Stock Analysis Report
