Yahoo Finance Should Value Investors Buy EZCORP (EZPW) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
EZPW is also sporting a PEG ratio of 0.28. 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. EZPW's industry has an average PEG of 0.48 right now. Within the past year, EZPW's PEG has been as high as 0.32 and as low as 0.26, with a median of 0.29.
Investors should also recognize that EZPW has a P/B ratio of 0.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EZPW's current P/B looks attractive when compared to its industry's average P/B of 0.90. 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 0.66.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EZPW has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.24.
Value investors will likely look at more than just these metrics, but the above data helps show that EZCORP is likely undervalued currently. And when considering the strength of its earnings outlook, EZPW sticks out at as one of the market's strongest value stocks.
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EZCORP, Inc. (EZPW) : Free Stock Analysis Report
