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Is Quest Diagnostics (DGX) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Quest Diagnostics (DGX - Free Report) . DGX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.94. This compares to its industry's average Forward P/E of 20.74. Over the past 52 weeks, DGX's Forward P/E has been as high as 20.60 and as low as 11.34, with a median of 15.75.
Investors will also notice that DGX has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DGX's PEG compares to its industry's average PEG of 1.13. DGX's PEG has been as high as 0.66 and as low as 0.50, with a median of 0.61, all within the past year.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.41. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.66. DGX's P/B has been as high as 3.28 and as low as 2.32, with a median of 2.73, over the past year.
Finally, our model also underscores that DGX has a P/CF ratio of 6.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.43. DGX's P/CF has been as high as 9 and as low as 6.38, with a median of 7.18, all within the past year.
These are just a handful of the figures considered in Quest Diagnostics'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 DGX is an impressive value stock right now.
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Is Quest Diagnostics (DGX) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Quest Diagnostics (DGX - Free Report) . DGX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.94. This compares to its industry's average Forward P/E of 20.74. Over the past 52 weeks, DGX's Forward P/E has been as high as 20.60 and as low as 11.34, with a median of 15.75.
Investors will also notice that DGX has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DGX's PEG compares to its industry's average PEG of 1.13. DGX's PEG has been as high as 0.66 and as low as 0.50, with a median of 0.61, all within the past year.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.41. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.66. DGX's P/B has been as high as 3.28 and as low as 2.32, with a median of 2.73, over the past year.
Finally, our model also underscores that DGX has a P/CF ratio of 6.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.43. DGX's P/CF has been as high as 9 and as low as 6.38, with a median of 7.18, all within the past year.
These are just a handful of the figures considered in Quest Diagnostics'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 DGX is an impressive value stock right now.