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Should Value Investors Buy Henry Schein (HSIC) Stock?
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Henry Schein (HSIC - Free Report) . HSIC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 16.56 right now. For comparison, its industry sports an average P/E of 18.32. Over the last 12 months, HSIC's Forward P/E has been as high as 18.52 and as low as 12.89, with a median of 16.11.
Investors should also recognize that HSIC has a P/B ratio of 2.64. The P/B ratio pits a stock's market value against 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 6.50. Within the past 52 weeks, HSIC's P/B has been as high as 3.03 and as low as 2.10, with a median of 2.57.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HSIC has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.08.
Finally, we should also recognize that HSIC has a P/CF ratio of 13.25. 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 24.79. Over the past 52 weeks, HSIC's P/CF has been as high as 14.86 and as low as 10.52, with a median of 12.88.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
McKesson is trading at a forward earnings multiple of 13.84 at the moment, with a PEG ratio of 1.34. This compares to its industry's average P/E of 18.32 and average PEG ratio of 1.63.
Over the past year, MCK's P/E has been as high as 15.66, as low as 11.69, with a median of 14.02; its PEG ratio has been as high as 1.56, as low as 0.99, with a median of 1.71 during the same time period.
McKesson also has a P/B ratio of -23.84 compared to its industry's price-to-book ratio of 6.50. Over the past year, its P/B ratio has been as high as -23.48, as low as -59.10, with a median of -33.73.
These are just a handful of the figures considered in Henry Schein and McKesson'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 HSIC and MCK is an impressive value stock right now.
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Should Value Investors Buy Henry Schein (HSIC) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Henry Schein (HSIC - Free Report) . HSIC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 16.56 right now. For comparison, its industry sports an average P/E of 18.32. Over the last 12 months, HSIC's Forward P/E has been as high as 18.52 and as low as 12.89, with a median of 16.11.
Investors should also recognize that HSIC has a P/B ratio of 2.64. The P/B ratio pits a stock's market value against 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 6.50. Within the past 52 weeks, HSIC's P/B has been as high as 3.03 and as low as 2.10, with a median of 2.57.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HSIC has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.08.
Finally, we should also recognize that HSIC has a P/CF ratio of 13.25. 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 24.79. Over the past 52 weeks, HSIC's P/CF has been as high as 14.86 and as low as 10.52, with a median of 12.88.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
McKesson is trading at a forward earnings multiple of 13.84 at the moment, with a PEG ratio of 1.34. This compares to its industry's average P/E of 18.32 and average PEG ratio of 1.63.
Over the past year, MCK's P/E has been as high as 15.66, as low as 11.69, with a median of 14.02; its PEG ratio has been as high as 1.56, as low as 0.99, with a median of 1.71 during the same time period.
McKesson also has a P/B ratio of -23.84 compared to its industry's price-to-book ratio of 6.50. Over the past year, its P/B ratio has been as high as -23.48, as low as -59.10, with a median of -33.73.
These are just a handful of the figures considered in Henry Schein and McKesson'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 HSIC and MCK is an impressive value stock right now.