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Is Prog Holdings (PRG) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Prog Holdings (PRG - Free Report) is a stock many investors are watching right now. PRG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that PRG holds a PEG ratio of 0.54. 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. PRG's PEG compares to its industry's average PEG of 0.71. Over the last 12 months, PRG's PEG has been as high as 1.36 and as low as 0.52, with a median of 0.88.

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. PRG has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.95.

Value investors will likely look at more than just these metrics, but the above data helps show that Prog Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, PRG sticks out at as one of the market's strongest value stocks.


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