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Are Investors Undervaluing World Acceptance (WRLD) 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, 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.
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.
One company to watch right now is World Acceptance (WRLD - Free Report) . WRLD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.90. This compares to its industry's average Forward P/E of 8.92. Over the past year, WRLD's Forward P/E has been as high as 12.19 and as low as 7.32, with a median of 9.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WRLD has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.39.
Finally, we should also recognize that WRLD has a P/CF ratio of 6.73. 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. WRLD's P/CF compares to its industry's average P/CF of 6.90. WRLD's P/CF has been as high as 9.59 and as low as 5.43, with a median of 6.48, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that World Acceptance is likely undervalued currently. And when considering the strength of its earnings outlook, WRLD sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing World Acceptance (WRLD) 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, 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.
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.
One company to watch right now is World Acceptance (WRLD - Free Report) . WRLD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.90. This compares to its industry's average Forward P/E of 8.92. Over the past year, WRLD's Forward P/E has been as high as 12.19 and as low as 7.32, with a median of 9.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. WRLD has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.39.
Finally, we should also recognize that WRLD has a P/CF ratio of 6.73. 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. WRLD's P/CF compares to its industry's average P/CF of 6.90. WRLD's P/CF has been as high as 9.59 and as low as 5.43, with a median of 6.48, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that World Acceptance is likely undervalued currently. And when considering the strength of its earnings outlook, WRLD sticks out at as one of the market's strongest value stocks.