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Is Enova International (ENVA) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

One company to watch right now is Enova International (ENVA - Free Report) . ENVA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.55, which compares to its industry's average of 6.96. Over the last 12 months, ENVA's Forward P/E has been as high as 14.40 and as low as 6.55, with a median of 10.61.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENVA has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.37.

These are only a few of the key metrics included in Enova International'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, ENVA looks like an impressive value stock at the moment.


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