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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Humana (HUM - Free Report) is a stock many investors are watching right now. HUM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 18.18 right now. For comparison, its industry sports an average P/E of 21.27. Over the past 52 weeks, HUM's Forward P/E has been as high as 22.63 and as low as 15.20, with a median of 17.64.
Investors will also notice that HUM has a PEG ratio of 1.35. 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 1.47. Over the past 52 weeks, HUM's PEG has been as high as 1.68 and as low as 1.13, with a median of 1.30.
We should also highlight that HUM has a P/B ratio of 3.95. 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 stock's P/B looks solid versus its industry's average P/B of 4.87. Within the past 52 weeks, HUM's P/B has been as high as 4.04 and as low as 2.90, with a median of 3.56.
Finally, we should also recognize that HUM has a P/CF ratio of 15.65. 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 19.68. HUM's P/CF has been as high as 18.09 and as low as 12.81, with a median of 15.52, all within the past year.
Molina Healthcare (MOH - Free Report) may be another strong Medical - HMOs stock to add to your shortlist. MOH is a # 2 (Buy) stock with a Value grade of A.
Shares of Molina Healthcare are currently trading at a forward earnings multiple of 17.26 and a PEG ratio of 1.05 compared to its industry's P/E and PEG ratios of 21.27 and 1.47, respectively.
MOH's Forward P/E has been as high as 23.62 and as low as 13.75, with a median of 17.41. During the same time period, its PEG ratio has been as high as 1.12, as low as 0.74, with a median of 0.96.
Additionally, Molina Healthcare has a P/B ratio of 6.74 while its industry's price-to-book ratio sits at 4.87. For MOH, this valuation metric has been as high as 7.63, as low as 5.29, with a median of 6.64 over the past year.
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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Should Value Investors Buy Humana (HUM) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Humana (HUM - Free Report) is a stock many investors are watching right now. HUM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 18.18 right now. For comparison, its industry sports an average P/E of 21.27. Over the past 52 weeks, HUM's Forward P/E has been as high as 22.63 and as low as 15.20, with a median of 17.64.
Investors will also notice that HUM has a PEG ratio of 1.35. 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 1.47. Over the past 52 weeks, HUM's PEG has been as high as 1.68 and as low as 1.13, with a median of 1.30.
We should also highlight that HUM has a P/B ratio of 3.95. 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 stock's P/B looks solid versus its industry's average P/B of 4.87. Within the past 52 weeks, HUM's P/B has been as high as 4.04 and as low as 2.90, with a median of 3.56.
Finally, we should also recognize that HUM has a P/CF ratio of 15.65. 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 19.68. HUM's P/CF has been as high as 18.09 and as low as 12.81, with a median of 15.52, all within the past year.
Molina Healthcare (MOH - Free Report) may be another strong Medical - HMOs stock to add to your shortlist. MOH is a # 2 (Buy) stock with a Value grade of A.
Shares of Molina Healthcare are currently trading at a forward earnings multiple of 17.26 and a PEG ratio of 1.05 compared to its industry's P/E and PEG ratios of 21.27 and 1.47, respectively.
MOH's Forward P/E has been as high as 23.62 and as low as 13.75, with a median of 17.41. During the same time period, its PEG ratio has been as high as 1.12, as low as 0.74, with a median of 0.96.
Additionally, Molina Healthcare has a P/B ratio of 6.74 while its industry's price-to-book ratio sits at 4.87. For MOH, this valuation metric has been as high as 7.63, as low as 5.29, with a median of 6.64 over the past year.
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.