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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is AllScripts Healthcare (MDRX - Free Report) . MDRX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that MDRX has a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MDRX's PEG compares to its industry's average PEG of 3.62. Within the past year, MDRX's PEG has been as high as 1.58 and as low as 0.85, with a median of 1.22.
We should also highlight that MDRX has a P/B ratio of 1.31. The P/B ratio pits a stock's market value against 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 2.89. MDRX's P/B has been as high as 2.30 and as low as 1.05, with a median of 1.29, over the past year.
Finally, we should also recognize that MDRX has a P/CF ratio of 4.42. 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 12.37. Within the past 12 months, MDRX's P/CF has been as high as 8.87 and as low as 2.53, with a median of 3.83.
These are only a few of the key metrics included in AllScripts Healthcare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MDRX looks like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is AllScripts Healthcare (MDRX - Free Report) . MDRX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that MDRX has a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MDRX's PEG compares to its industry's average PEG of 3.62. Within the past year, MDRX's PEG has been as high as 1.58 and as low as 0.85, with a median of 1.22.
We should also highlight that MDRX has a P/B ratio of 1.31. The P/B ratio pits a stock's market value against 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 2.89. MDRX's P/B has been as high as 2.30 and as low as 1.05, with a median of 1.29, over the past year.
Finally, we should also recognize that MDRX has a P/CF ratio of 4.42. 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 12.37. Within the past 12 months, MDRX's P/CF has been as high as 8.87 and as low as 2.53, with a median of 3.83.
These are only a few of the key metrics included in AllScripts Healthcare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MDRX looks like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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