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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is WEX (WEX - Free Report) . WEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.95. This compares to its industry's average Forward P/E of 22.04. Over the past year, WEX's Forward P/E has been as high as 14.49 and as low as 10.26, with a median of 12.28.
Investors will also notice that WEX has a PEG ratio of 0.89. 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. WEX's industry has an average PEG of 1.33 right now. Within the past year, WEX's PEG has been as high as 1.79 and as low as 0.89, with a median of 1.20.
Another notable valuation metric for WEX is its P/B ratio of 4.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WEX's current P/B looks attractive when compared to its industry's average P/B of 7.19. Within the past 52 weeks, WEX's P/B has been as high as 5.71 and as low as 4.11, with a median of 4.73.
Finally, investors will want to recognize that WEX has a P/CF ratio of 14.42. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WEX's P/CF compares to its industry's average P/CF of 17.69. Over the past 52 weeks, WEX's P/CF has been as high as 19.14 and as low as 13.18, with a median of 17.05.
These are just a handful of the figures considered in WEX'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 WEX is an impressive value stock right now.
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Are Investors Undervaluing WEX (WEX) Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is WEX (WEX - Free Report) . WEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.95. This compares to its industry's average Forward P/E of 22.04. Over the past year, WEX's Forward P/E has been as high as 14.49 and as low as 10.26, with a median of 12.28.
Investors will also notice that WEX has a PEG ratio of 0.89. 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. WEX's industry has an average PEG of 1.33 right now. Within the past year, WEX's PEG has been as high as 1.79 and as low as 0.89, with a median of 1.20.
Another notable valuation metric for WEX is its P/B ratio of 4.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WEX's current P/B looks attractive when compared to its industry's average P/B of 7.19. Within the past 52 weeks, WEX's P/B has been as high as 5.71 and as low as 4.11, with a median of 4.73.
Finally, investors will want to recognize that WEX has a P/CF ratio of 14.42. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WEX's P/CF compares to its industry's average P/CF of 17.69. Over the past 52 weeks, WEX's P/CF has been as high as 19.14 and as low as 13.18, with a median of 17.05.
These are just a handful of the figures considered in WEX'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 WEX is an impressive value stock right now.