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Is Elevate Credit, Inc. (ELVT) Stock Undervalued 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Elevate Credit, Inc. (ELVT) is a stock many investors are watching right now. ELVT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.10. This compares to its industry's average Forward P/E of 7.93. 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 7.15.

Finally, our model also underscores that ELVT has a P/CF ratio of 4.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.85. Over the past 52 weeks, ELVT's P/CF has been as high as 24.50 and as low as 4.66, with a median of 11.08.

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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