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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.
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 Humana (HUM - Free Report) . HUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 17.62 right now. For comparison, its industry sports an average P/E of 20.12. Over the past year, HUM's Forward P/E has been as high as 22.63 and as low as 15.20, with a median of 18.23.
Investors should also note that HUM holds a PEG ratio of 1.29. 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. HUM's PEG compares to its industry's average PEG of 1.44. Within the past year, HUM's PEG has been as high as 1.72 and as low as 1.13, with a median of 1.36.
We should also highlight that HUM has a P/B ratio of 3.50. 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. This stock's P/B looks solid versus its industry's average P/B of 4.75. Over the past 12 months, HUM's P/B has been as high as 4.27 and as low as 2.90, with a median of 3.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HUM has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.77.
Finally, investors should note that HUM has a P/CF ratio of 15.68. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 20.20. Within the past 12 months, HUM's P/CF has been as high as 19.41 and as low as 12.33, with a median of 16.15.
If you're looking for another solid Medical - HMOs value stock, take a look at Molina Healthcare (MOH - Free Report) . MOH is a # 2 (Buy) stock with a Value score of A.
Molina Healthcare is currently trading with a Forward P/E ratio of 18.12 while its PEG ratio sits at 0.96. Both of the company's metrics compare favorably to its industry's average P/E of 20.12 and average PEG ratio of 1.44.
Over the past year, MOH's P/E has been as high as 23.62, as low as 15.59, with a median of 17.64; its PEG ratio has been as high as 1.88, as low as 0.74, with a median of 1.36 during the same time period.
Molina Healthcare sports a P/B ratio of 7.25 as well; this compares to its industry's price-to-book ratio of 4.75. In the past 52 weeks, MOH's P/B has been as high as 7.75, as low as 5.96, with a median of 6.83.
These are only a few of the key metrics included in Humana and Molina Healthcare strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HUM and MOH look like an impressive value stock at the moment.
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Is Humana (HUM) a Great Value Stock Right Now?
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.
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 Humana (HUM - Free Report) . HUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 17.62 right now. For comparison, its industry sports an average P/E of 20.12. Over the past year, HUM's Forward P/E has been as high as 22.63 and as low as 15.20, with a median of 18.23.
Investors should also note that HUM holds a PEG ratio of 1.29. 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. HUM's PEG compares to its industry's average PEG of 1.44. Within the past year, HUM's PEG has been as high as 1.72 and as low as 1.13, with a median of 1.36.
We should also highlight that HUM has a P/B ratio of 3.50. 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. This stock's P/B looks solid versus its industry's average P/B of 4.75. Over the past 12 months, HUM's P/B has been as high as 4.27 and as low as 2.90, with a median of 3.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HUM has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.77.
Finally, investors should note that HUM has a P/CF ratio of 15.68. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 20.20. Within the past 12 months, HUM's P/CF has been as high as 19.41 and as low as 12.33, with a median of 16.15.
If you're looking for another solid Medical - HMOs value stock, take a look at Molina Healthcare (MOH - Free Report) . MOH is a # 2 (Buy) stock with a Value score of A.
Molina Healthcare is currently trading with a Forward P/E ratio of 18.12 while its PEG ratio sits at 0.96. Both of the company's metrics compare favorably to its industry's average P/E of 20.12 and average PEG ratio of 1.44.
Over the past year, MOH's P/E has been as high as 23.62, as low as 15.59, with a median of 17.64; its PEG ratio has been as high as 1.88, as low as 0.74, with a median of 1.36 during the same time period.
Molina Healthcare sports a P/B ratio of 7.25 as well; this compares to its industry's price-to-book ratio of 4.75. In the past 52 weeks, MOH's P/B has been as high as 7.75, as low as 5.96, with a median of 6.83.
These are only a few of the key metrics included in Humana and Molina Healthcare strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HUM and MOH look like an impressive value stock at the moment.