Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Mr Cooper (COOP)

Based in Coppell, TX, Mr. Cooper Group Inc. provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands — Mr. Cooper, Xome and Rushmore Servicing. Mr. Cooper is the largest home loan servicer in the country, focused on delivering a variety of servicing and lending products, services and technologies.

COOP is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 8.8X for the current fiscal year compared to the Financial - Consumer Loans industry's P/E of 9.3X. Additionally, COOP has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 10.3X. Value investors should also note COOP's Price/Sales ratio of 3.4X.

Many value investors pay close attention to a company's earnings as well. For COOP, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $13.31 per share for 2025. Per share COOP boasts an average earnings surprise of 7.9%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding COOP to their portfolios.

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MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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