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Is Henry Schein (HSIC) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One company to watch right now is Henry Schein (HSIC - Free Report) . HSIC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.50. This compares to its industry's average Forward P/E of 17.49. HSIC's Forward P/E has been as high as 18.52 and as low as 12.89, with a median of 15.94, all within the past year.

Another notable valuation metric for HSIC is its P/B ratio of 2.57. 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. HSIC's current P/B looks attractive when compared to its industry's average P/B of 6.35. 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 2.58.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HSIC has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.07.

Finally, investors should note that HSIC has a P/CF ratio of 14.07. 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 23.82. HSIC's P/CF has been as high as 16.14 and as low as 10.52, with a median of 12.91, all within the past year.

These are just a handful of the figures considered in Henry Schein'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 is an impressive value stock right now.

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