Yahoo Finance Are Investors Undervaluing Green Dot (GDOT) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is Green Dot (GDOT). GDOT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 21.15. Over the last 12 months, GDOT's Forward P/E has been as high as 11.46 and as low as 6.40, with a median of 8.57.
Finally, our model also underscores that GDOT has a P/CF ratio of 6.47. 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. GDOT's current P/CF looks attractive when compared to its industry's average P/CF of 22.19. GDOT's P/CF has been as high as 11.51 and as low as 5.53, with a median of 7.69, all within the past year.
Another great Financial Transaction Services stock you could consider is Paysafe Limited (PSFE), which is a # 2 (Buy) stock with a Value Score of A.
Paysafe Limited is trading at a forward earnings multiple of 16.19 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 21.15 and average PEG ratio of 1.37.
Over the last 12 months, PSFE's P/E has been as high as 1,313.38, as low as -328.50, with a median of 14.08, and its PEG ratio has been as high as 130.55, as low as -32.65, with a median of 1.26.
Paysafe Limited also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 5.82. Over the past year, its P/B ratio has been as high as 1.89, as low as 0.83, with a median of 1.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Green Dot and Paysafe Limited are likely undervalued currently. And when considering the strength of its earnings outlook, GDOT and PSFE sticks out as one of the market's strongest value stocks.
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Green Dot Corporation (GDOT) : Free Stock Analysis Report
Paysafe Limited (PSFE) : Free Stock Analysis Report
