Should Value Investors Buy Cardtronics (CATM) Stock?
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, 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.
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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 18.22, which compares to its industry's average of 24.16. Over the past year, CATM's Forward P/E has been as high as 20.55 and as low as 6.41, with a median of 11.31.
Investors should also note that CATM holds a PEG ratio of 1.52. 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. CATM's industry has an average PEG of 1.61 right now. Over the last 12 months, CATM's PEG has been as high as 1.87 and as low as 0.50, with a median of 0.98.
Another notable valuation metric for CATM is its P/B ratio of 3.31. 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. This stock's P/B looks solid versus its industry's average P/B of 9.44. Over the past year, CATM's P/B has been as high as 3.46 and as low as 2.07, with a median of 2.73.
These are only a few of the key metrics included in Cardtronics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CATM looks like an impressive value stock at the moment.
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Cardtronics PLC (CATM) : Free Stock Analysis Report
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