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Why Waddell & Reed (WDR) is Such a Great Value Stock Pick Right Now

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Waddell & Reed Financial, Inc. WDR.

Waddell & Reed in Focus

WDR may be an interesting play thanks to its forward PE of 11.3, its P/S ratio of 0.97, and its decent dividend yield of 6.5%. These factors suggest that Waddell & Reed is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that WDR has decent revenue metrics to back up its earnings.

Waddell Reed Financial, Inc. PS Ratio (TTM)

Waddell  Reed Financial, Inc. PS Ratio (TTM)

Waddell Reed Financial, Inc. ps-ratio-ttm | Waddell Reed Financial, Inc. Quote

But before you think that Waddell & Reed is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 2.2% in the past 30 days, thanks to two upward revisions in the past one months compared to one lower.

This estimate strength is actually enough to push WDR to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Waddell & Reed is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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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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