Yahoo Finance Should Value Investors Buy Perdoceo Education (PRDO) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Perdoceo Education (PRDO). PRDO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that PRDO has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PRDO's industry currently sports an average PEG of 1.25. Over the last 12 months, PRDO's PEG has been as high as 0.73 and as low as 0.43, with a median of 0.55.
Another notable valuation metric for PRDO is its P/B ratio of 1.09. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.25. Over the past 12 months, PRDO's P/B has been as high as 1.45 and as low as 0.97, with a median of 1.20.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRDO has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.28.
These are only a few of the key metrics included in Perdoceo Education'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, PRDO looks like an impressive value stock at the moment.
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
Perdoceo Education Corporation (PRDO) : Free Stock Analysis Report
