We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Encore Capital Group (ECPG) Stock Undervalued Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Encore Capital Group (ECPG - Free Report) . ECPG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.46. This compares to its industry's average Forward P/E of 9.53. ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49, all within the past year.
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. ECPG has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that ECPG has a P/CF ratio of 17.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ECPG's P/CF compares to its industry's average P/CF of 27.74. Over the past 52 weeks, ECPG's P/CF has been as high as 99.38 and as low as 10.25, with a median of 17.11.
Investors could also keep in mind Enova International (ENVA - Free Report) , another Financial - Consumer Loans stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Enova International also has a P/B ratio of 2.57 compared to its industry's price-to-book ratio of 0.82. Over the past year, its P/B ratio has been as high as 2.58, as low as 1.79, with a median of 2.15.
These are only a few of the key metrics included in Encore Capital Group and Enova International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ECPG and ENVA look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Encore Capital Group (ECPG) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Encore Capital Group (ECPG - Free Report) . ECPG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.46. This compares to its industry's average Forward P/E of 9.53. ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49, all within the past year.
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. ECPG has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.31.
Finally, we should also recognize that ECPG has a P/CF ratio of 17.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ECPG's P/CF compares to its industry's average P/CF of 27.74. Over the past 52 weeks, ECPG's P/CF has been as high as 99.38 and as low as 10.25, with a median of 17.11.
Investors could also keep in mind Enova International (ENVA - Free Report) , another Financial - Consumer Loans stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Enova International also has a P/B ratio of 2.57 compared to its industry's price-to-book ratio of 0.82. Over the past year, its P/B ratio has been as high as 2.58, as low as 1.79, with a median of 2.15.
These are only a few of the key metrics included in Encore Capital Group and Enova International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ECPG and ENVA look like an impressive value stock at the moment.