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Is Enova International (ENVA) Stock Undervalued Right Now?

Zacks Equity Research

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.

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.

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.

Enova International (ENVA) is a stock many investors are watching right now. ENVA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.38 right now. For comparison, its industry sports an average P/E of 7.63. Over the past 52 weeks, ENVA's Forward P/E has been as high as 9.21 and as low as 5.13, with a median of 6.81.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ENVA has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.38.

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


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