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Are Investors Undervaluing Euronet Worldwide (EEFT) Right Now?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Euronet Worldwide (EEFT - Free Report) . EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.98 right now. For comparison, its industry sports an average P/E of 12.99. Over the last 12 months, EEFT's Forward P/E has been as high as 15.10 and as low as 9.29, with a median of 12.34.

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. EEFT has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.75.

Finally, investors will want to recognize that EEFT has a P/CF ratio of 13.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.67. Over the past year, EEFT's P/CF has been as high as 16.76 and as low as 9.15, with a median of 12.19.

These are just a handful of the figures considered in Euronet Worldwide's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EEFT is an impressive value stock right now.


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