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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 Centene (CNC - Free Report) . CNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.34. This compares to its industry's average Forward P/E of 17.29. Over the last 12 months, CNC's Forward P/E has been as high as 18.66 and as low as 13.08, with a median of 16.07.
Investors should also note that CNC holds a PEG ratio of 1.02. 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. CNC's PEG compares to its industry's average PEG of 1.26. Within the past year, CNC's PEG has been as high as 1.28 and as low as 0.87, with a median of 1.08.
We should also highlight that CNC has a P/B ratio of 2.48. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.97. Over the past 12 months, CNC's P/B has been as high as 2.96 and as low as 2.08, with a median of 2.60.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.45.
These are only a few of the key metrics included in Centene'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, CNC looks like an impressive value stock at the moment.
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Is Centene (CNC) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 Centene (CNC - Free Report) . CNC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.34. This compares to its industry's average Forward P/E of 17.29. Over the last 12 months, CNC's Forward P/E has been as high as 18.66 and as low as 13.08, with a median of 16.07.
Investors should also note that CNC holds a PEG ratio of 1.02. 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. CNC's PEG compares to its industry's average PEG of 1.26. Within the past year, CNC's PEG has been as high as 1.28 and as low as 0.87, with a median of 1.08.
We should also highlight that CNC has a P/B ratio of 2.48. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.97. Over the past 12 months, CNC's P/B has been as high as 2.96 and as low as 2.08, with a median of 2.60.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.45.
These are only a few of the key metrics included in Centene'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, CNC looks like an impressive value stock at the moment.