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Should Value Investors Buy Phibro Animal Health (PAHC) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Phibro Animal Health (PAHC - Free Report) . PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.23, while its industry has an average P/E of 23.97. Over the past 52 weeks, PAHC's Forward P/E has been as high as 23.75 and as low as 13.97, with a median of 17.32.

PAHC is also sporting a PEG ratio of 1.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PAHC's PEG compares to its industry's average PEG of 1.99. Over the last 12 months, PAHC's PEG has been as high as 2.24 and as low as 1.68, with a median of 1.94.

Finally, our model also underscores that PAHC has a P/CF ratio of 9.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.07. Within the past 12 months, PAHC's P/CF has been as high as 16.03 and as low as 8.70, with a median of 11.07.

Value investors will likely look at more than just these metrics, but the above data helps show that Phibro Animal Health is likely undervalued currently. And when considering the strength of its earnings outlook, PAHC sticks out at as one of the market's strongest value stocks.


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