Is WEX (WEX) 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 WEX (WEX). WEX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.98, which compares to its industry's average of 22.19. Over the last 12 months, WEX's Forward P/E has been as high as 12.19 and as low as 7.27, with a median of 10.12. We also note that WEX holds a PEG ratio of 1.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WEX's industry currently sports an average PEG of 1.80. Over the last 12 months, WEX's PEG has been as high as 2.61 and as low as 0.78, with a median of 1.14. Another notable valuation metric for WEX is its P/B ratio of 6.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 8.80. Over the past 12 months, WEX's P/B has been as high as 6.84 and as low as 3.87, with a median of 4.68.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WEX has a P/S ratio of 2.32. This compares to its industry's average P/S of 2.59.Finally, we should also recognize that WEX has a P/CF ratio of 9.51. 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. WEX's P/CF compares to its industry's average P/CF of 18.03. Over the past 52 weeks, WEX's P/CF has been as high as 16.12 and as low as 6.99, with a median of 10.92.These figures are just a handful of the metrics value investors tend to look at, but they help show that WEX is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WEX feels like a great value stock at the moment.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free 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 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