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Is MEDIFAST (MED) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is MEDIFAST (MED - Free Report) . MED is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.31, which compares to its industry's average of 17.36. MED's Forward P/E has been as high as 20.38 and as low as 9.39, with a median of 12.67, all within the past year.

Finally, investors should note that MED has a P/CF ratio of 12.12. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.14. Over the past year, MED's P/CF has been as high as 25.88 and as low as 10.67, with a median of 14.03.

Another great Food - Miscellaneous stock you could consider is United Natural Foods (UNFI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, United Natural Foods has a P/B ratio of 1.31 while its industry's price-to-book ratio sits at 2. For UNFI, this valuation metric has been as high as 2.03, as low as 1.20, with a median of 1.46 over the past year.

These are only a few of the key metrics included in MEDIFAST and United Natural Foods strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MED and UNFI look like an impressive value stock at the moment.


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