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Are Investors Undervaluing Labcorp (LH) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Labcorp (LH - Free Report) . LH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.51. This compares to its industry's average Forward P/E of 19.08. Over the last 12 months, LH's Forward P/E has been as high as 17.15 and as low as 11.84, with a median of 14.
LH is also sporting a PEG ratio of 1.62. 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. LH's industry has an average PEG of 1.76 right now. Over the past 52 weeks, LH's PEG has been as high as 1.64 and as low as 1.61, with a median of 1.62.
Another valuation metric that we should highlight is LH's P/B ratio of 2.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LH's current P/B looks attractive when compared to its industry's average P/B of 4.79. Within the past 52 weeks, LH's P/B has been as high as 2.51 and as low as 1.81, with a median of 2.15.
Finally, investors will want to recognize that LH has a P/CF ratio of 18.68. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.03. Over the past 52 weeks, LH's P/CF has been as high as 19.98 and as low as 8.69, with a median of 11.22.
These are only a few of the key metrics included in Labcorp'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, LH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Labcorp (LH) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Labcorp (LH - Free Report) . LH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.51. This compares to its industry's average Forward P/E of 19.08. Over the last 12 months, LH's Forward P/E has been as high as 17.15 and as low as 11.84, with a median of 14.
LH is also sporting a PEG ratio of 1.62. 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. LH's industry has an average PEG of 1.76 right now. Over the past 52 weeks, LH's PEG has been as high as 1.64 and as low as 1.61, with a median of 1.62.
Another valuation metric that we should highlight is LH's P/B ratio of 2.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LH's current P/B looks attractive when compared to its industry's average P/B of 4.79. Within the past 52 weeks, LH's P/B has been as high as 2.51 and as low as 1.81, with a median of 2.15.
Finally, investors will want to recognize that LH has a P/CF ratio of 18.68. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.03. Over the past 52 weeks, LH's P/CF has been as high as 19.98 and as low as 8.69, with a median of 11.22.
These are only a few of the key metrics included in Labcorp'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, LH looks like an impressive value stock at the moment.