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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 18.78. This compares to its industry's average Forward P/E of 20.73. Over the past 52 weeks, EHC's Forward P/E has been as high as 20.79 and as low as 16.26, with a median of 18.65.
We also note that EHC holds a PEG ratio of 1.22. 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. EHC's PEG compares to its industry's average PEG of 1.63. EHC's PEG has been as high as 1.77 and as low as 1.16, with a median of 1.39, all within the past year.
Investors should also recognize that EHC has a P/B ratio of 3.34. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.58. Over the past year, EHC's P/B has been as high as 3.57 and as low as 2.82, with a median of 3.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Encompass Health is likely undervalued currently. And when considering the strength of its earnings outlook, EHC sticks out at as one of the market's strongest value stocks.
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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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 18.78. This compares to its industry's average Forward P/E of 20.73. Over the past 52 weeks, EHC's Forward P/E has been as high as 20.79 and as low as 16.26, with a median of 18.65.
We also note that EHC holds a PEG ratio of 1.22. 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. EHC's PEG compares to its industry's average PEG of 1.63. EHC's PEG has been as high as 1.77 and as low as 1.16, with a median of 1.39, all within the past year.
Investors should also recognize that EHC has a P/B ratio of 3.34. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.58. Over the past year, EHC's P/B has been as high as 3.57 and as low as 2.82, with a median of 3.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Encompass Health is likely undervalued currently. And when considering the strength of its earnings outlook, EHC sticks out at as one of the market's strongest value stocks.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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