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Is Paysign (PAYS) Stock Undervalued Right Now?

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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.

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.

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.

Paysign (PAYS - Free Report) is a stock many investors are watching right now. PAYS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.34, which compares to its industry's average of 22.65. Over the past 52 weeks, PAYS's Forward P/E has been as high as 22.80 and as low as 9.37, with a median of 16.58.

Investors should also recognize that PAYS has a P/B ratio of 7.64. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.68. Within the past 52 weeks, PAYS's P/B has been as high as 10.84 and as low as 4.91, with a median of 7.84.

Another great Financial Transaction Services stock you could consider is Western Union (WU - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Western Union is currently trading with a Forward P/E ratio of 6.65 while its PEG ratio sits at 1.76. Both of the company's metrics compare favorably to its industry's average P/E of 22.65 and average PEG ratio of 1.37.

Over the last 12 months, WU's P/E has been as high as 8.31, as low as 6.27, with a median of 7.13, and its PEG ratio has been as high as 5.13, as low as 1.64, with a median of 1.91.

Western Union sports a P/B ratio of 9.32 as well; this compares to its industry's price-to-book ratio of 7.68. In the past 52 weeks, WU's P/B has been as high as 11.69, as low as 6.51, with a median of 9.39.

Value investors will likely look at more than just these metrics, but the above data helps show that Paysign and Western Union are likely undervalued currently. And when considering the strength of its earnings outlook, PAYS and WU sticks out as one of the market's strongest value stocks.


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