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Is FRESENIUS SE&CO (FSNUY) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is FRESENIUS SE&CO (FSNUY - Free Report) . FSNUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.93, while its industry has an average P/E of 24.68. FSNUY's Forward P/E has been as high as 14.08 and as low as 6.92, with a median of 11.59, all within the past year.

Investors will also notice that FSNUY has a PEG ratio of 2.12. 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. FSNUY's industry currently sports an average PEG of 2.40.

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. FSNUY has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.82.

These figures are just a handful of the metrics value investors tend to look at, but they help show that FRESENIUS SE&CO is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSNUY feels like a great value stock at the moment.


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