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Are Investors Undervaluing These Medical Stocks Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 AdaptHealth (AHCO - Free Report) . AHCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.02. This compares to its industry's average Forward P/E of 25.05. Over the past year, AHCO's Forward P/E has been as high as 34.07 and as low as 11.55, with a median of 18.
Another valuation metric that we should highlight is AHCO's P/B ratio of 1.53. 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. This stock's P/B looks solid versus its industry's average P/B of 3.01. Over the past year, AHCO's P/B has been as high as 9.12 and as low as 1.22, with a median of 1.78.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AHCO has a P/S ratio of 1.48. This compares to its industry's average P/S of 3.85.
Finally, we should also recognize that AHCO has a P/CF ratio of 9.02. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.34. Within the past 12 months, AHCO's P/CF has been as high as 105.17 and as low as 7.22, with a median of 17.49.
If you're looking for another solid Medical - Products value stock, take a look at Owens & Minor (OMI - Free Report) . OMI is a # 2 (Buy) stock with a Value score of A.
Owens & Minor is trading at a forward earnings multiple of 13.81 at the moment, with a PEG ratio of 0.73. This compares to its industry's average P/E of 25.05 and average PEG ratio of 1.93.
Over the last 12 months, OMI's P/E has been as high as 14.25, as low as 8.74, with a median of 11.48, and its PEG ratio has been as high as 0.85, as low as 0.20, with a median of 0.60.
Furthermore, Owens & Minor holds a P/B ratio of 3.86 and its industry's price-to-book ratio is 3.01. OMI's P/B has been as high as 4.66, as low as 2.62, with a median of 3.48 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that AdaptHealth and Owens & Minor are likely undervalued currently. And when considering the strength of its earnings outlook, AHCO and OMI sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Medical Stocks 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 AdaptHealth (AHCO - Free Report) . AHCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.02. This compares to its industry's average Forward P/E of 25.05. Over the past year, AHCO's Forward P/E has been as high as 34.07 and as low as 11.55, with a median of 18.
Another valuation metric that we should highlight is AHCO's P/B ratio of 1.53. 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. This stock's P/B looks solid versus its industry's average P/B of 3.01. Over the past year, AHCO's P/B has been as high as 9.12 and as low as 1.22, with a median of 1.78.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AHCO has a P/S ratio of 1.48. This compares to its industry's average P/S of 3.85.
Finally, we should also recognize that AHCO has a P/CF ratio of 9.02. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.34. Within the past 12 months, AHCO's P/CF has been as high as 105.17 and as low as 7.22, with a median of 17.49.
If you're looking for another solid Medical - Products value stock, take a look at Owens & Minor (OMI - Free Report) . OMI is a # 2 (Buy) stock with a Value score of A.
Owens & Minor is trading at a forward earnings multiple of 13.81 at the moment, with a PEG ratio of 0.73. This compares to its industry's average P/E of 25.05 and average PEG ratio of 1.93.
Over the last 12 months, OMI's P/E has been as high as 14.25, as low as 8.74, with a median of 11.48, and its PEG ratio has been as high as 0.85, as low as 0.20, with a median of 0.60.
Furthermore, Owens & Minor holds a P/B ratio of 3.86 and its industry's price-to-book ratio is 3.01. OMI's P/B has been as high as 4.66, as low as 2.62, with a median of 3.48 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that AdaptHealth and Owens & Minor are likely undervalued currently. And when considering the strength of its earnings outlook, AHCO and OMI sticks out as one of the market's strongest value stocks.