
Valuation Metrics - Investors primarily assess a company's value using price-to-earnings (P/E) and price-to-sales (P/S) ratios, where P/E measures annual earnings relative to stock price, and P/S indicates the price investors pay for each dollar of revenue generated [1] - The price-to-book (P/B) ratio is calculated by dividing the market capitalization by the book value of equity, helping to identify low-priced stocks with high growth potential [26][27] - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio above one indicates it may be overvalued [4][18] Company Profiles - Paysafe Limited, headquartered in Las Vegas, is a specialized payments platform offering payment processing solutions and digital wallets [9] - Deluxe, based in Minneapolis, MA, provides payment and business technology solutions to help businesses manage transactions [38] - KB Home, a prominent homebuilder in the U.S., generates 99.5% of its revenue from homebuilding and 0.5% from financial services [35] Growth Projections - Deluxe has a projected 3-5 year EPS growth rate of 12% and holds a Zacks Rank of 2 with a Value Score of A [10] - KB Home has a projected 3-5 year EPS growth rate of 11.8% and also holds a Zacks Rank of 2 with a Value Score of A [13] - Paysafe Limited has a projected 3-5 year EPS growth rate of 18.7% and holds a Zacks Rank of 2 with a Value Score of A [34] - ASE Technology has a projected 3-5 year EPS growth rate of 28.7% and holds a Zacks Rank of 2 with a Value Score of A [37] Screening Parameters - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform regardless of market conditions [8] - A lower P/E or P/S ratio compared to the industry median is considered favorable for stock selection [20][31] - A Value Score of A or B combined with a Zacks Rank of 1 or 2 offers strong investment opportunities [33]