Are Investors Undervaluing EDENRED (EDNMY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is EDENRED (EDNMY). EDNMY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.06, while its industry has an average P/E of 21.90. EDNMY's Forward P/E has been as high as 16.86 and as low as 7.70, with a median of 12.27, all within the past year.

Investors will also notice that EDNMY has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EDNMY's industry has an average PEG of 1.28 right now. EDNMY's PEG has been as high as 1.42 and as low as 0.54, with a median of 0.95, all within the past year.

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

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

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Source Zacks-com