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Is Senior Housing Properties (SNH) Stock Undervalued 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Senior Housing Properties is a stock many investors are watching right now. SNH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.88. This compares to its industry's average Forward P/E of 18.42. SNH's Forward P/E has been as high as 9.71 and as low as 5.32, with a median of 7.10, all within the past year.

SNH is also sporting a PEG ratio of 1.97. 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. SNH's industry has an average PEG of 3.15 right now. SNH's PEG has been as high as 3.60 and as low as 1.57, with a median of 2.42, all within the past year.

Finally, our model also underscores that SNH has a P/CF ratio of 10.61. 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. SNH's current P/CF looks attractive when compared to its industry's average P/CF of 17.11. Over the past 52 weeks, SNH's P/CF has been as high as 10.61 and as low as 3.57, with a median of 5.33.

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

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