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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is GoHealth (GOCO - Free Report) . GOCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GOCO's P/B ratio of 0.47. 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. GOCO's current P/B looks attractive when compared to its industry's average P/B of 1.27. Over the past year, GOCO's P/B has been as high as 1.48 and as low as 0.14, with a median of 0.28.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOCO has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GoHealth is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GOCO feels like a great value stock at the moment.
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Is GoHealth (GOCO) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is GoHealth (GOCO - Free Report) . GOCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GOCO's P/B ratio of 0.47. 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. GOCO's current P/B looks attractive when compared to its industry's average P/B of 1.27. Over the past year, GOCO's P/B has been as high as 1.48 and as low as 0.14, with a median of 0.28.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOCO has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GoHealth is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GOCO feels like a great value stock at the moment.