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Should Value Investors Buy Laureate Education (LAUR) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 stock to keep an eye on is Laureate Education (LAUR - Free Report) . LAUR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.64, which compares to its industry's average of 18.82. Over the last 12 months, LAUR's Forward P/E has been as high as 14.19 and as low as 9.26, with a median of 10.69.

Another valuation metric that we should highlight is LAUR's P/B ratio of 3.10. 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. This stock's P/B looks attractive against its industry's average P/B of 3.70. LAUR's P/B has been as high as 3.10 and as low as 2.08, with a median of 2.42, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Laureate Education is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LAUR feels like a great value stock at the moment.


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