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Are Investors Undervaluing Despegar.com (DESP) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Despegar.com (DESP - Free Report) . DESP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.06. This compares to its industry's average Forward P/E of 17.68. Over the last 12 months, DESP's Forward P/E has been as high as 40.04 and as low as 10.45, with a median of 15.86.
Investors should also note that DESP holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DESP's PEG compares to its industry's average PEG of 1.39. Over the past 52 weeks, DESP's PEG has been as high as 0.65 and as low as 0.47, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the above data helps show that Despegar.com is likely undervalued currently. And when considering the strength of its earnings outlook, DESP sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Despegar.com (DESP) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Despegar.com (DESP - Free Report) . DESP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.06. This compares to its industry's average Forward P/E of 17.68. Over the last 12 months, DESP's Forward P/E has been as high as 40.04 and as low as 10.45, with a median of 15.86.
Investors should also note that DESP holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DESP's PEG compares to its industry's average PEG of 1.39. Over the past 52 weeks, DESP's PEG has been as high as 0.65 and as low as 0.47, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the above data helps show that Despegar.com is likely undervalued currently. And when considering the strength of its earnings outlook, DESP sticks out at as one of the market's strongest value stocks.