Should Value Investors Buy Euronet Worldwide (EEFT) Stock?

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Euronet Worldwide (EEFT). EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.70 right now. For comparison, its industry sports an average P/E of 12.97. Over the past 52 weeks, EEFT's Forward P/E has been as high as 15.10 and as low as 9.29, with a median of 12.01.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EEFT has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.57.

Finally, investors will want to recognize that EEFT has a P/CF ratio of 12.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.04. Within the past 12 months, EEFT's P/CF has been as high as 16.66 and as low as 9.10, with a median of 11.90.

These are only a few of the key metrics included in Euronet Worldwide'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, EEFT looks like an impressive value stock at the moment.

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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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