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Is Tivity Health (TVTY) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Tivity Health . TVTY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.55 right now. For comparison, its industry sports an average P/E of 13.96. Over the past year, TVTY's Forward P/E has been as high as 23.29 and as low as 11.55, with a median of 15.93.

TVTY is also sporting a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TVTY's PEG compares to its industry's average PEG of 1.15. Within the past year, TVTY's PEG has been as high as 2.12 and as low as 1.05, with a median of 1.45.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TVTY has a P/S ratio of 1.91. This compares to its industry's average P/S of 2.57.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Tivity Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TVTY feels like a great value stock at the moment.

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