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Is Noah Holdings (NOAH) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Noah Holdings (NOAH - Free Report) is a stock many investors are watching right now. NOAH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.58. This compares to its industry's average Forward P/E of 11.53. Over the past year, NOAH's Forward P/E has been as high as 14.61 and as low as 5.58, with a median of 11.02.

Investors should also note that NOAH holds a PEG ratio of 0.46. 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. NOAH's industry currently sports an average PEG of 0.69. Within the past year, NOAH's PEG has been as high as 0.67 and as low as 0.46, with a median of 0.53.

Investors should also recognize that NOAH has a P/B ratio of 1.04. 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. NOAH's current P/B looks attractive when compared to its industry's average P/B of 2.40. NOAH's P/B has been as high as 2.80 and as low as 0.94, with a median of 1.96, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NOAH has a P/S ratio of 2.09. This compares to its industry's average P/S of 2.7.

Finally, we should also recognize that NOAH has a P/CF ratio of 6.42. 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 19.30. NOAH's P/CF has been as high as 9.65 and as low as -47.74, with a median of -37.80, all within the past year.

These are just a handful of the figures considered in Noah Holdings'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 NOAH is an impressive value stock right now.


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