U.S. Markets closed
  • S&P Futures

    3,654.75
    +31.50 (+0.87%)
     
  • Dow Futures

    29,874.00
    +245.00 (+0.83%)
     
  • Nasdaq Futures

    12,384.00
    +107.00 (+0.87%)
     
  • Russell 2000 Futures

    1,840.80
    +20.70 (+1.14%)
     
  • Crude Oil

    44.92
    -0.42 (-0.93%)
     
  • Gold

    1,786.50
    +5.60 (+0.31%)
     
  • Silver

    22.93
    +0.34 (+1.51%)
     
  • EUR/USD

    1.1963
    +0.0029 (+0.2393%)
     
  • 10-Yr Bond

    0.8440
    +0.0020 (+0.24%)
     
  • Vix

    20.57
    -0.27 (-1.30%)
     
  • GBP/USD

    1.3355
    +0.0023 (+0.1749%)
     
  • USD/JPY

    104.4330
    +0.1090 (+0.1045%)
     
  • BTC-USD

    19,561.75
    +51.87 (+0.27%)
     
  • CMC Crypto 200

    383.79
    +19.19 (+5.26%)
     
  • FTSE 100

    6,266.19
    -101.39 (-1.59%)
     
  • Nikkei 225

    26,824.46
    +390.84 (+1.48%)
     

Should Value Investors Buy QIWI PLC (QIWI) Stock?

Zacks Equity Research
·3 min read

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is QIWI PLC (QIWI). QIWI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that QIWI has a P/B ratio of 2.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. QIWI's current P/B looks attractive when compared to its industry's average P/B of 7.82. QIWI's P/B has been as high as 3.43 and as low as 1.89, with a median of 2.66, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. QIWI has a P/S ratio of 2. This compares to its industry's average P/S of 5.16.

Finally, investors will want to recognize that QIWI has a P/CF ratio of 11.85. 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. QIWI's current P/CF looks attractive when compared to its industry's average P/CF of 25.14. Over the past year, QIWI's P/CF has been as high as 16.81 and as low as 10.49, with a median of 12.67.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
QIWI PLC (QIWI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research