Are Investors Undervaluing EDENRED (EDNMY) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

EDENRED (EDNMY) is a stock many investors are watching right now. EDNMY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.65 right now. For comparison, its industry sports an average P/E of 23.24. EDNMY's Forward P/E has been as high as 18.16 and as low as 9.65, with a median of 13.09, all within the past year.

Investors should also note that EDNMY holds a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EDNMY's PEG compares to its industry's average PEG of 1.15. EDNMY's PEG has been as high as 1.42 and as low as 0.54, with a median of 0.69, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that EDENRED is likely undervalued currently. And when considering the strength of its earnings outlook, EDNMY sticks out as one of the market's strongest value stocks.

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

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