Yahoo Finance Should Value Investors Buy EZCORP (EZPW) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is EZCORP (EZPW). EZPW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that EZPW holds a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EZPW's PEG compares to its industry's average PEG of 0.81. Over the past 52 weeks, EZPW's PEG has been as high as 0.42 and as low as 0.27, with a median of 0.32.
Another valuation metric that we should highlight is EZPW's P/B ratio of 0.64. 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 0.71. EZPW's P/B has been as high as 0.86 and as low as 0.59, with a median of 0.68, over the past year.
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. EZPW has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.07.
These are only a few of the key metrics included in EZCORP'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, EZPW looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EZCORP, Inc. (EZPW) : Free Stock Analysis Report
