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Should Value Investors Buy AmerisourceBergen (ABC) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 stock to keep an eye on is AmerisourceBergen . ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.16, while its industry has an average P/E of 18.43. Over the past year, ABC's Forward P/E has been as high as 14.90 and as low as 11.77, with a median of 13.20.
Investors should also note that ABC holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABC's industry currently sports an average PEG of 1.63. ABC's PEG has been as high as 1.82 and as low as 1.43, with a median of 1.59, all within the past year.
Finally, our model also underscores that ABC has a P/CF ratio of 12.86. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 24.76. Within the past 12 months, ABC's P/CF has been as high as 14.86 and as low as 10.91, with a median of 13.35.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
Shares of McKesson are currently trading at a forward earnings multiple of 13.77 and a PEG ratio of 1.33 compared to its industry's P/E and PEG ratios of 18.43 and 1.63, respectively.
Over the last 12 months, MCK's P/E has been as high as 15.66, as low as 11.65, with a median of 14.02, and its PEG ratio has been as high as 1.56, as low as 0.99, with a median of 1.43.
Furthermore, McKesson holds a P/B ratio of -23.77 and its industry's price-to-book ratio is 6.50. MCK's P/B has been as high as -23.77, as low as -59.10, with a median of -34.64 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AmerisourceBergen and McKesson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABC and MCK feels like a great value stock at the moment.
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Should Value Investors Buy AmerisourceBergen (ABC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 stock to keep an eye on is AmerisourceBergen . ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.16, while its industry has an average P/E of 18.43. Over the past year, ABC's Forward P/E has been as high as 14.90 and as low as 11.77, with a median of 13.20.
Investors should also note that ABC holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABC's industry currently sports an average PEG of 1.63. ABC's PEG has been as high as 1.82 and as low as 1.43, with a median of 1.59, all within the past year.
Finally, our model also underscores that ABC has a P/CF ratio of 12.86. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 24.76. Within the past 12 months, ABC's P/CF has been as high as 14.86 and as low as 10.91, with a median of 13.35.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
Shares of McKesson are currently trading at a forward earnings multiple of 13.77 and a PEG ratio of 1.33 compared to its industry's P/E and PEG ratios of 18.43 and 1.63, respectively.
Over the last 12 months, MCK's P/E has been as high as 15.66, as low as 11.65, with a median of 14.02, and its PEG ratio has been as high as 1.56, as low as 0.99, with a median of 1.43.
Furthermore, McKesson holds a P/B ratio of -23.77 and its industry's price-to-book ratio is 6.50. MCK's P/B has been as high as -23.77, as low as -59.10, with a median of -34.64 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AmerisourceBergen and McKesson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABC and MCK feels like a great value stock at the moment.