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Should Value Investors Buy Euronet Worldwide (EEFT) Stock?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Euronet Worldwide (EEFT - Free Report) . EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.16. This compares to its industry's average Forward P/E of 13.87. Over the last 12 months, EEFT's Forward P/E has been as high as 14.33 and as low as 9.29, with a median of 11.72.

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 1.22. This compares to its industry's average P/S of 1.9.

Finally, investors should note that EEFT has a P/CF ratio of 11.91. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.75. EEFT's P/CF has been as high as 15.11 and as low as 9.10, with a median of 11.84, all within the past year.

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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