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Are Investors Undervaluing Tivity Health (TVTY) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Tivity Health . TVTY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

TVTY is also sporting a PEG ratio of 0.87. 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 industry currently sports an average PEG of 2.60. Over the past 52 weeks, TVTY's PEG has been as high as 1.60 and as low as 0.67, with a median of 1.31.

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. TVTY has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.87.

These are just a handful of the figures considered in Tivity Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TVTY is an impressive value stock right now.

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