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Are Investors Undervaluing Quest Diagnostics (DGX) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Quest Diagnostics (DGX - Free Report) . DGX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.94 right now. For comparison, its industry sports an average P/E of 28.86. Over the past year, DGX's Forward P/E has been as high as 18.57 and as low as 13.95, with a median of 15.63.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DGX's current P/B looks attractive when compared to its industry's average P/B of 3.14. DGX's P/B has been as high as 3 and as low as 2.20, with a median of 2.54, over the past year.
Finally, investors will want to recognize that DGX has a P/CF ratio of 11.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGX's current P/CF looks attractive when compared to its industry's average P/CF of 31.32. Within the past 12 months, DGX's P/CF has been as high as 13.01 and as low as 6.70, with a median of 8.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quest Diagnostics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGX feels like a great value stock at the moment.
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Are Investors Undervaluing Quest Diagnostics (DGX) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Quest Diagnostics (DGX - Free Report) . DGX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.94 right now. For comparison, its industry sports an average P/E of 28.86. Over the past year, DGX's Forward P/E has been as high as 18.57 and as low as 13.95, with a median of 15.63.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DGX's current P/B looks attractive when compared to its industry's average P/B of 3.14. DGX's P/B has been as high as 3 and as low as 2.20, with a median of 2.54, over the past year.
Finally, investors will want to recognize that DGX has a P/CF ratio of 11.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DGX's current P/CF looks attractive when compared to its industry's average P/CF of 31.32. Within the past 12 months, DGX's P/CF has been as high as 13.01 and as low as 6.70, with a median of 8.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quest Diagnostics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGX feels like a great value stock at the moment.