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Should Value Investors Buy Euronet Worldwide (EEFT) Stock?

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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, 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.

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 stock to keep an eye on is Euronet Worldwide (EEFT - Free Report) . EEFT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.54 right now. For comparison, its industry sports an average P/E of 12.90. EEFT's Forward P/E has been as high as 15.10 and as low as 9.29, with a median of 12.34, all within the past year.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EEFT has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.73.

Finally, investors should note that EEFT has a P/CF ratio of 12.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.68. Within the past 12 months, EEFT's P/CF has been as high as 16.76 and as low as 9.15, with a median of 12.17.

These are only a few of the key metrics included in Euronet Worldwide'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, EEFT looks like an impressive value stock at the moment.


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