Should Value Investors Buy Evertec (EVTC) Stock?

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Evertec (EVTC) is a stock many investors are watching right now. EVTC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 21.48. EVTC's Forward P/E has been as high as 11.49 and as low as 9.26, with a median of 10.35, all within the past year.

Investors will also notice that EVTC has a PEG ratio of 1.34. 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. EVTC's industry currently sports an average PEG of 1.79. Over the past 52 weeks, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.33.

Another notable valuation metric for EVTC is its P/B ratio of 3.5. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. EVTC's current P/B looks attractive when compared to its industry's average P/B of 8.56. EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27, over the past year.

Finally, investors will want to recognize that EVTC has a P/CF ratio of 8.19. 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. EVTC's P/CF compares to its industry's average P/CF of 17.50. Within the past 12 months, EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96.

These are only a few of the key metrics included in Evertec's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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