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Is Enova International (ENVA) a Great Value Stock Right Now?

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·2 min read
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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.

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.

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.

One company value investors might notice is Enova International (ENVA). ENVA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.44. This compares to its industry's average Forward P/E of 16.01. Over the past year, ENVA's Forward P/E has been as high as 10.48 and as low as 2.43, with a median of 5.47.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENVA has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.39.

Finally, we should also recognize that ENVA has a P/CF ratio of 2.95. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.46. Over the past 52 weeks, ENVA's P/CF has been as high as 21.30 and as low as 1.96, with a median of 6.19.

These are only a few of the key metrics included in Enova International'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, ENVA looks like an impressive value stock at the moment.


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