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Is Henry Schein (HSIC) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Henry Schein (HSIC - Free Report) . HSIC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 18.44. This compares to its industry's average Forward P/E of 19.30. Over the last 12 months, HSIC's Forward P/E has been as high as 25.29 and as low as 16.46, with a median of 18.78.

Investors should also recognize that HSIC has a P/B ratio of 2.71. 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. HSIC's current P/B looks attractive when compared to its industry's average P/B of 5.90. HSIC's P/B has been as high as 2.92 and as low as 2.18, with a median of 2.51, over the past year.

Finally, investors will want to recognize that HSIC has a P/CF ratio of 17.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 50.06. HSIC's P/CF has been as high as 19.02 and as low as 10.21, with a median of 15.50, all within the past year.

These are only a few of the key metrics included in Henry Schein'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, HSIC looks like an impressive value stock at the moment.


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