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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, 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.
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.
LabCorp (LH - Free Report) is a stock many investors are watching right now. LH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.86. This compares to its industry's average Forward P/E of 19.04. Over the last 12 months, LH's Forward P/E has been as high as 16.27 and as low as 10.55, with a median of 12.75.
LH is also sporting a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LH's industry currently sports an average PEG of 1.54. Over the past 52 weeks, LH's PEG has been as high as 2.64 and as low as 1.04, with a median of 1.27.
Another valuation metric that we should highlight is LH's P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.80. Over the past year, LH's P/B has been as high as 2.71 and as low as 2.12, with a median of 2.45.
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. LH has a P/S ratio of 1.76. This compares to its industry's average P/S of 3.77.
These are just a handful of the figures considered in LabCorp'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 LH is an impressive value stock right now.
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Should Value Investors Buy LabCorp (LH) Stock?
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, 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.
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.
LabCorp (LH - Free Report) is a stock many investors are watching right now. LH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.86. This compares to its industry's average Forward P/E of 19.04. Over the last 12 months, LH's Forward P/E has been as high as 16.27 and as low as 10.55, with a median of 12.75.
LH is also sporting a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LH's industry currently sports an average PEG of 1.54. Over the past 52 weeks, LH's PEG has been as high as 2.64 and as low as 1.04, with a median of 1.27.
Another valuation metric that we should highlight is LH's P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.80. Over the past year, LH's P/B has been as high as 2.71 and as low as 2.12, with a median of 2.45.
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. LH has a P/S ratio of 1.76. This compares to its industry's average P/S of 3.77.
These are just a handful of the figures considered in LabCorp'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 LH is an impressive value stock right now.