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Are Investors Undervaluing Patterson Companies (PDCO) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Patterson Companies (PDCO - Free Report) . PDCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.28, while its industry has an average P/E of 17.63. Over the last 12 months, PDCO's Forward P/E has been as high as 13.74 and as low as 10.85, with a median of 11.82.
Investors will also notice that PDCO has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PDCO's PEG compares to its industry's average PEG of 1.64. PDCO's PEG has been as high as 1.90 and as low as 1.20, with a median of 1.53, all within the past year.
We should also highlight that PDCO has a P/B ratio of 2.74. 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. PDCO's current P/B looks attractive when compared to its industry's average P/B of 4.47. Within the past 52 weeks, PDCO's P/B has been as high as 2.96 and as low as 2.25, with a median of 2.60.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PDCO has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.32.
Finally, our model also underscores that PDCO has a P/CF ratio of 10.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PDCO's current P/CF looks attractive when compared to its industry's average P/CF of 19.13. Over the past 52 weeks, PDCO's P/CF has been as high as 11.16 and as low as 8.73, with a median of 9.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Patterson Companies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PDCO feels like a great value stock at the moment.
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Are Investors Undervaluing Patterson Companies (PDCO) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Patterson Companies (PDCO - Free Report) . PDCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.28, while its industry has an average P/E of 17.63. Over the last 12 months, PDCO's Forward P/E has been as high as 13.74 and as low as 10.85, with a median of 11.82.
Investors will also notice that PDCO has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PDCO's PEG compares to its industry's average PEG of 1.64. PDCO's PEG has been as high as 1.90 and as low as 1.20, with a median of 1.53, all within the past year.
We should also highlight that PDCO has a P/B ratio of 2.74. 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. PDCO's current P/B looks attractive when compared to its industry's average P/B of 4.47. Within the past 52 weeks, PDCO's P/B has been as high as 2.96 and as low as 2.25, with a median of 2.60.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PDCO has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.32.
Finally, our model also underscores that PDCO has a P/CF ratio of 10.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PDCO's current P/CF looks attractive when compared to its industry's average P/CF of 19.13. Over the past 52 weeks, PDCO's P/CF has been as high as 11.16 and as low as 8.73, with a median of 9.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Patterson Companies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PDCO feels like a great value stock at the moment.