Are Investors Undervaluing Fresenius Medical Care AG & Co. (FMS) Right Now?

FMS

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Fresenius Medical Care AG & Co. (FMS - Free Report) . FMS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.22, while its industry has an average P/E of 27.07. Over the past year, FMS's Forward P/E has been as high as 20.62 and as low as 8.15, with a median of 16.42.

We also note that FMS holds a PEG ratio of 0.87. 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 industry currently sports an average PEG of 1.69. FMS's PEG has been as high as 0.87 and as low as 0.67, with a median of 0.73, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Fresenius Medical Care AG & Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, FMS sticks out at as one of the market's strongest value stocks.

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