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Is Cardtronics (CATM) a Great Value Stock Right Now?

Zacks

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Cardtronics (CATM). CATM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.69, while its industry has an average P/E of 21.36. Over the past year, CATM’s Forward P/E has been as high as 20.86 and as low as 7.05, with a median of 15.90.


Investors should also note that CATM holds a PEG ratio of 1.14. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. CATM’s industry has an average PEG of 1.43 right now. CATM’s PEG has been as high as 1.87 and as low as 0.59, with a median of 1.40, all within the past year.

We should also highlight that CATM has a P/B ratio of 3.18. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive against its industry’s average P/B of 8.99. Over the past year, CATM’s P/B has been as high as 4.41 and as low as 2.29, with a median of 3.04.

Finally, investors should note that CATM has a P/CF ratio of 6.04. 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. CATM’s P/CF compares to its industry’s average P/CF of 22.13. Over the past 52 weeks, CATM’s P/CF has been as high as 7.71 and as low as 3.84, with a median of 5.33.

Value investors will likely look at more than just these metrics, but the above data helps show that Cardtronics is likely undervalued currently. And when considering the strength of its earnings outlook, CATM sticks out at as one of the market’s strongest value stocks.


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