Yahoo Finance Is WEX (WEX) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is WEX (WEX). WEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.31. This compares to its industry's average Forward P/E of 22.47. Over the last 12 months, WEX's Forward P/E has been as high as 14.49 and as low as 10.26, with a median of 12.28.
Investors should also note that WEX holds a PEG ratio of 1. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WEX's industry has an average PEG of 1.40 right now. Within the past year, WEX's PEG has been as high as 1.79 and as low as 0.99, with a median of 1.21.
We should also highlight that WEX has a P/B ratio of 4.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. WEX's current P/B looks attractive when compared to its industry's average P/B of 7.49. Over the past year, WEX's P/B has been as high as 5.71 and as low as 4.11, with a median of 4.71.
Finally, investors will want to recognize that WEX has a P/CF ratio of 16.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.58. Over the past year, WEX's P/CF has been as high as 19.14 and as low as 13.18, with a median of 17.37.
These are just a handful of the figures considered in WEX'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 WEX is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WEX Inc. (WEX) : Free Stock Analysis Report
