Is PagSeguro Digital (PAGS) a Great Value Stock 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.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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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.PagSeguro Digital (PAGS) is a stock many investors are watching right now. PAGS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.24, which compares to its industry's average of 20.97. Over the past year, PAGS's Forward P/E has been as high as 7.81 and as low as 4.84, with a median of 6.45. Investors will also notice that PAGS has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.72. Within the past year, PAGS's PEG has been as high as 0.69 and as low as 0.33, with a median of 0.49.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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAGS has a P/S ratio of 0.98. This compares to its industry's average P/S of 2.33.Investors could also keep in mind WEX (WEX), another Financial Transaction Services stock with a Zacks Rank of #2 (Buy) and Value grade of A.WEX is currently trading with a Forward P/E ratio of 9.68 while its PEG ratio sits at 1.22. Both of the company's metrics compare favorably to its industry's average P/E of 20.97 and average PEG ratio of 1.72.WEX's Forward P/E has been as high as 12.19 and as low as 7.27, with a median of 10.12. During the same time period, its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29.Furthermore, WEX holds a P/B ratio of 5.72 and its industry's price-to-book ratio is 8.38. WEX's P/B has been as high as 6.84, as low as 3.96, with a median of 5.05 over the past 12 months.These are just a handful of the figures considered in PagSeguro Digital and WEX's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAGS and WEX is an impressive value stock right now.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report WEX Inc. (WEX): 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