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Is Elevate Credit, Inc. (ELVT) a Great Value Stock Right Now?

Zacks Equity Research

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.

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 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 stock to keep an eye on is Elevate Credit, Inc. (ELVT). ELVT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.24. This compares to its industry's average Forward P/E of 7.87. Over the past year, ELVT's Forward P/E has been as high as 15.67 and as low as 3.80, with a median of 7.08.

Finally, we should also recognize that ELVT has a P/CF ratio of 4.80. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.87. ELVT's P/CF has been as high as 24.50 and as low as 4.63, with a median of 6.28, all within the past year.

These are only a few of the key metrics included in Elevate Credit, Inc.'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, ELVT looks like an impressive value stock at the moment.


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