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AHCO vs. SYK: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Medical - Products stocks have likely encountered both AdaptHealth Corp. (AHCO - Free Report) and Stryker (SYK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, AdaptHealth Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Stryker has a Zacks Rank of #3 (Hold). This means that AHCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AHCO currently has a forward P/E ratio of 22.55, while SYK has a forward P/E of 28.68. We also note that AHCO has a PEG ratio of 0.51. 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. SYK currently has a PEG ratio of 2.99.
Another notable valuation metric for AHCO is its P/B ratio of 6.60. 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. By comparison, SYK has a P/B of 7.34.
These are just a few of the metrics contributing to AHCO's Value grade of B and SYK's Value grade of C.
AHCO sticks out from SYK in both our Zacks Rank and Style Scores models, so value investors will likely feel that AHCO is the better option right now.
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AHCO vs. SYK: Which Stock Should Value Investors Buy Now?
Investors with an interest in Medical - Products stocks have likely encountered both AdaptHealth Corp. (AHCO - Free Report) and Stryker (SYK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, AdaptHealth Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Stryker has a Zacks Rank of #3 (Hold). This means that AHCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AHCO currently has a forward P/E ratio of 22.55, while SYK has a forward P/E of 28.68. We also note that AHCO has a PEG ratio of 0.51. 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. SYK currently has a PEG ratio of 2.99.
Another notable valuation metric for AHCO is its P/B ratio of 6.60. 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. By comparison, SYK has a P/B of 7.34.
These are just a few of the metrics contributing to AHCO's Value grade of B and SYK's Value grade of C.
AHCO sticks out from SYK in both our Zacks Rank and Style Scores models, so value investors will likely feel that AHCO is the better option right now.