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Are Investors Undervaluing These Medical Stocks 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is AdaptHealth (AHCO - Free Report) . AHCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.76, while its industry has an average P/E of 23.32. Over the last 12 months, AHCO's Forward P/E has been as high as 34.07 and as low as 10.76, with a median of 17.67.
We should also highlight that AHCO has a P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus 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 2.75. Over the past year, AHCO's P/B has been as high as 9.12 and as low as 1.18, with a median of 1.74.
Finally, our model also underscores that AHCO has a P/CF ratio of 6.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.89. Within the past 12 months, AHCO's P/CF has been as high as 105.17 and as low as 6.98, with a median of 16.24.
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 12.45 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 23.32 and average PEG ratio of 1.81.
Over the last 12 months, OMI's P/E has been as high as 14.53, as low as 8.74, with a median of 11.51, and its PEG ratio has been as high as 0.85, as low as 0.20, with a median of 0.61.
Furthermore, Owens & Minor holds a P/B ratio of 3.57 and its industry's price-to-book ratio is 2.75. OMI's P/B has been as high as 4.66, as low as 2.62, with a median of 3.52 over the past 12 months.
These are just a handful of the figures considered in AdaptHealth and Owens & Minor'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 AHCO and OMI is an impressive value stock right now.
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Are Investors Undervaluing These Medical Stocks Right Now?
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is AdaptHealth (AHCO - Free Report) . AHCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.76, while its industry has an average P/E of 23.32. Over the last 12 months, AHCO's Forward P/E has been as high as 34.07 and as low as 10.76, with a median of 17.67.
We should also highlight that AHCO has a P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus 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 2.75. Over the past year, AHCO's P/B has been as high as 9.12 and as low as 1.18, with a median of 1.74.
Finally, our model also underscores that AHCO has a P/CF ratio of 6.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.89. Within the past 12 months, AHCO's P/CF has been as high as 105.17 and as low as 6.98, with a median of 16.24.
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 12.45 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 23.32 and average PEG ratio of 1.81.
Over the last 12 months, OMI's P/E has been as high as 14.53, as low as 8.74, with a median of 11.51, and its PEG ratio has been as high as 0.85, as low as 0.20, with a median of 0.61.
Furthermore, Owens & Minor holds a P/B ratio of 3.57 and its industry's price-to-book ratio is 2.75. OMI's P/B has been as high as 4.66, as low as 2.62, with a median of 3.52 over the past 12 months.
These are just a handful of the figures considered in AdaptHealth and Owens & Minor'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 AHCO and OMI is an impressive value stock right now.