Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company to watch right now is AmerisourceBergen . ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 17.73. Over the past 52 weeks, ABC's Forward P/E has been as high as 13.10 and as low as 9.32, with a median of 11.55.
Investors should also note that ABC holds a PEG ratio of 1.55. 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. ABC's PEG compares to its industry's average PEG of 2.48. Within the past year, ABC's PEG has been as high as 1.85 and as low as 1.26, with a median of 1.54.
Finally, we should also recognize that ABC has a P/CF ratio of 10.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABC's P/CF compares to its industry's average P/CF of 35.19. ABC's P/CF has been as high as 17.96 and as low as 8.34, with a median of 10.53, all within the past year.
These are just a handful of the figures considered in AmerisourceBergen's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABC is an impressive value stock right now.
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Is AmerisourceBergen (ABC) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company to watch right now is AmerisourceBergen . ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 17.73. Over the past 52 weeks, ABC's Forward P/E has been as high as 13.10 and as low as 9.32, with a median of 11.55.
Investors should also note that ABC holds a PEG ratio of 1.55. 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. ABC's PEG compares to its industry's average PEG of 2.48. Within the past year, ABC's PEG has been as high as 1.85 and as low as 1.26, with a median of 1.54.
Finally, we should also recognize that ABC has a P/CF ratio of 10.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABC's P/CF compares to its industry's average P/CF of 35.19. ABC's P/CF has been as high as 17.96 and as low as 8.34, with a median of 10.53, all within the past year.
These are just a handful of the figures considered in AmerisourceBergen's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABC is an impressive value stock right now.