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Are These Medical Stocks a Great Value Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Henry Schein (HSIC - Free Report) . HSIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.24. This compares to its industry's average Forward P/E of 18.48. Over the last 12 months, HSIC's Forward P/E has been as high as 21.02 and as low as 15.13, with a median of 17.63.
Investors will also notice that HSIC has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HSIC's industry has an average PEG of 1.80 right now. Within the past year, HSIC's PEG has been as high as 2.85 and as low as 1.17, with a median of 1.58.
We should also highlight that HSIC has a P/B ratio of 2.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.96. HSIC's P/B has been as high as 2.92 and as low as 2.20, with a median of 2.63, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HSIC has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that HSIC has a P/CF ratio of 13.09. 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. HSIC's P/CF compares to its industry's average P/CF of 49.95. HSIC's P/CF has been as high as 19.02 and as low as 12.07, with a median of 13.75, all within the past year.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
McKesson is trading at a forward earnings multiple of 12.03 at the moment, with a PEG ratio of 1.02. This compares to its industry's average P/E of 18.48 and average PEG ratio of 1.80.
MCK's Forward P/E has been as high as 12.06 and as low as 9.17, with a median of 10.05. During the same time period, its PEG ratio has been as high as 1.73, as low as 0.96, with a median of 1.33.
Furthermore, McKesson holds a P/B ratio of -51.43 and its industry's price-to-book ratio is 5.96. MCK's P/B has been as high as 184.34, as low as -717.21, with a median of -347.85 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Henry Schein and McKesson are likely undervalued currently. And when considering the strength of its earnings outlook, HSIC and MCK sticks out as one of the market's strongest value stocks.
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Are These Medical Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Henry Schein (HSIC - Free Report) . HSIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.24. This compares to its industry's average Forward P/E of 18.48. Over the last 12 months, HSIC's Forward P/E has been as high as 21.02 and as low as 15.13, with a median of 17.63.
Investors will also notice that HSIC has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HSIC's industry has an average PEG of 1.80 right now. Within the past year, HSIC's PEG has been as high as 2.85 and as low as 1.17, with a median of 1.58.
We should also highlight that HSIC has a P/B ratio of 2.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.96. HSIC's P/B has been as high as 2.92 and as low as 2.20, with a median of 2.63, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HSIC has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that HSIC has a P/CF ratio of 13.09. 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. HSIC's P/CF compares to its industry's average P/CF of 49.95. HSIC's P/CF has been as high as 19.02 and as low as 12.07, with a median of 13.75, all within the past year.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
McKesson is trading at a forward earnings multiple of 12.03 at the moment, with a PEG ratio of 1.02. This compares to its industry's average P/E of 18.48 and average PEG ratio of 1.80.
MCK's Forward P/E has been as high as 12.06 and as low as 9.17, with a median of 10.05. During the same time period, its PEG ratio has been as high as 1.73, as low as 0.96, with a median of 1.33.
Furthermore, McKesson holds a P/B ratio of -51.43 and its industry's price-to-book ratio is 5.96. MCK's P/B has been as high as 184.34, as low as -717.21, with a median of -347.85 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Henry Schein and McKesson are likely undervalued currently. And when considering the strength of its earnings outlook, HSIC and MCK sticks out as one of the market's strongest value stocks.