Is Encore Capital Group (ECPG) Stock Undervalued Right Now?

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company value investors might notice is Encore Capital Group (ECPG). ECPG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.46. This compares to its industry's average Forward P/E of 9.53. ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49, all within the past year.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. ECPG has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.31.Finally, we should also recognize that ECPG has a P/CF ratio of 17.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ECPG's P/CF compares to its industry's average P/CF of 27.74. Over the past 52 weeks, ECPG's P/CF has been as high as 99.38 and as low as 10.25, with a median of 17.11.Investors could also keep in mind Enova International (ENVA), another Financial - Consumer Loans stock with a Zacks Rank of #2 (Buy) and Value grade of A.Enova International also has a P/B ratio of 2.57 compared to its industry's price-to-book ratio of 0.82. Over the past year, its P/B ratio has been as high as 2.58, as low as 1.79, with a median of 2.15.These are only a few of the key metrics included in Encore Capital Group and Enova International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ECPG and ENVA look like an impressive value stock at the moment.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Encore Capital Group Inc (ECPG): Free Stock Analysis Report Enova International, Inc. (ENVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks