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Are Investors Undervaluing Laureate Education (LAUR) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Laureate Education (LAUR - Free Report) . LAUR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 18.08. Over the past year, LAUR's Forward P/E has been as high as 15.51 and as low as 9.26, with a median of 10.70.

We should also highlight that LAUR has a P/B ratio of 2.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.48. LAUR's P/B has been as high as 2.82 and as low as 2.08, with a median of 2.41, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Laureate Education is likely undervalued currently. And when considering the strength of its earnings outlook, LAUR sticks out at as one of the market's strongest value stocks.


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