Are Investors Undervaluing Mr. Cooper Group (COOP) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Mr. Cooper Group (COOP) is a stock many investors are watching right now. COOP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that COOP has a P/B ratio of 0.82. 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. COOP's current P/B looks attractive when compared to its industry's average P/B of 0.92. Within the past 52 weeks, COOP's P/B has been as high as 1.16 and as low as 0.65, with a median of 0.77.
Finally, investors should note that COOP has a P/CF ratio of 3.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. COOP's current P/CF looks attractive when compared to its industry's average P/CF of 3.52. Over the past year, COOP's P/CF has been as high as 3.10 and as low as 1.75, with a median of 2.48.
Investors could also keep in mind EZCORP (EZPW), an Financial - Consumer Loans stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of EZCORP are currently trading at a forward earnings multiple of 12.27 and a PEG ratio of 0.35 compared to its industry's P/E and PEG ratios of 6.80 and 0.78, respectively.
EZPW's Forward P/E has been as high as 14.59 and as low as 9.21, with a median of 11.04. During the same time period, its PEG ratio has been as high as 0.42, as low as 0.26, with a median of 0.32.
Furthermore, EZCORP holds a P/B ratio of 0.73 and its industry's price-to-book ratio is 0.92. EZPW's P/B has been as high as 0.86, as low as 0.48, with a median of 0.65 over the past 12 months.
These are just a handful of the figures considered in Mr. Cooper Group and EZCORP'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 COOP and EZPW is an impressive value stock right now.
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MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report
EZCORP, Inc. (EZPW) : Free Stock Analysis Report
