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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Fresenius (FMS - Free Report) . FMS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.19 right now. For comparison, its industry sports an average P/E of 38.11. Over the past 52 weeks, FMS's Forward P/E has been as high as 17.28 and as low as 10.57, with a median of 14.06.
Investors will also notice that FMS has a PEG ratio of 2.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FMS's PEG compares to its industry's average PEG of 3.16. Over the last 12 months, FMS's PEG has been as high as 3.69 and as low as 2, with a median of 2.58.
We should also highlight that FMS has a P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FMS's current P/B looks attractive when compared to its industry's average P/B of 4.13. Within the past 52 weeks, FMS's P/B has been as high as 1.75 and as low as 1.18, with a median of 1.49.
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. FMS has a P/S ratio of 1.04. This compares to its industry's average P/S of 3.
Finally, investors will want to recognize that FMS has a P/CF ratio of 6.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.63. FMS's P/CF has been as high as 9.04 and as low as 5.59, with a median of 7.45, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fresenius is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMS feels like a great value stock at the moment.
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Is Fresenius (FMS) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Fresenius (FMS - Free Report) . FMS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.19 right now. For comparison, its industry sports an average P/E of 38.11. Over the past 52 weeks, FMS's Forward P/E has been as high as 17.28 and as low as 10.57, with a median of 14.06.
Investors will also notice that FMS has a PEG ratio of 2.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FMS's PEG compares to its industry's average PEG of 3.16. Over the last 12 months, FMS's PEG has been as high as 3.69 and as low as 2, with a median of 2.58.
We should also highlight that FMS has a P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FMS's current P/B looks attractive when compared to its industry's average P/B of 4.13. Within the past 52 weeks, FMS's P/B has been as high as 1.75 and as low as 1.18, with a median of 1.49.
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. FMS has a P/S ratio of 1.04. This compares to its industry's average P/S of 3.
Finally, investors will want to recognize that FMS has a P/CF ratio of 6.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.63. FMS's P/CF has been as high as 9.04 and as low as 5.59, with a median of 7.45, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fresenius is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMS feels like a great value stock at the moment.