Are Investors Undervaluing Perdoceo Education (PRDO) 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.

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.

Perdoceo Education (PRDO) is a stock many investors are watching right now. PRDO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.37 right now. For comparison, its industry sports an average P/E of 21.99. Over the last 12 months, PRDO's Forward P/E has been as high as 11.06 and as low as 6.46, with a median of 8.30.

Investors will also notice that PRDO has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PRDO's PEG compares to its industry's average PEG of 1.36. PRDO's PEG has been as high as 0.74 and as low as 0.43, with a median of 0.55, all within the past year.

We should also highlight that PRDO has a P/B ratio of 1.77. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.83. Over the past year, PRDO's P/B has been as high as 1.85 and as low as 1.03, with a median of 1.38.

These are just a handful of the figures considered in Perdoceo Education's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRDO is an impressive value stock right now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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