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Should Value Investors Buy Enova International (ENVA) Stock?

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·2 min read
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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Enova International (ENVA). ENVA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.54, while its industry has an average P/E of 11.48. Over the past year, ENVA's Forward P/E has been as high as 10.48 and as low as 1.80, with a median of 5.54.

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 0.31. This compares to its industry's average P/S of 0.83.

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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