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Are Investors Undervaluing Baxter International (BAX) 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 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 company value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.22. This compares to its industry's average Forward P/E of 23.53. Over the past 52 weeks, BAX's Forward P/E has been as high as 17.53 and as low as 11.10, with a median of 14.61.
We also note that BAX holds a PEG ratio of 2.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAX's PEG compares to its industry's average PEG of 2.75. BAX's PEG has been as high as 2.71 and as low as 1.04, with a median of 2.02, all within the past year.
Another notable valuation metric for BAX is its P/B ratio of 3.88. 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. This stock's P/B looks solid versus its industry's average P/B of 4.99. Over the past 12 months, BAX's P/B has been as high as 5.21 and as low as 3.07, with a median of 3.78.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.52. This compares to its industry's average P/S of 1.57.
Finally, investors should note that BAX has a P/CF ratio of 10.80. 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 12.23. BAX's P/CF has been as high as 18.95 and as low as 8.96, with a median of 13.33, all within the past year.
NuVasive may be another strong Medical - Products stock to add to your shortlist. NUVA is a # 2 (Buy) stock with a Value grade of A.
Shares of NuVasive are currently trading at a forward earnings multiple of 19.29 and a PEG ratio of 0.96 compared to its industry's P/E and PEG ratios of 23.53 and 2.75, respectively.
Over the past year, NUVA's P/E has been as high as 26.17, as low as 15.02, with a median of 20.08; its PEG ratio has been as high as 1.99, as low as 0.88, with a median of 2.02 during the same time period.
NuVasive also has a P/B ratio of 2.59 compared to its industry's price-to-book ratio of 4.99. Over the past year, its P/B ratio has been as high as 3.82, as low as 2.21, with a median of 2.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Baxter International and NuVasive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAX and NUVA feels like a great value stock at the moment.
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Are Investors Undervaluing Baxter International (BAX) Right Now?
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 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 company value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.22. This compares to its industry's average Forward P/E of 23.53. Over the past 52 weeks, BAX's Forward P/E has been as high as 17.53 and as low as 11.10, with a median of 14.61.
We also note that BAX holds a PEG ratio of 2.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAX's PEG compares to its industry's average PEG of 2.75. BAX's PEG has been as high as 2.71 and as low as 1.04, with a median of 2.02, all within the past year.
Another notable valuation metric for BAX is its P/B ratio of 3.88. 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. This stock's P/B looks solid versus its industry's average P/B of 4.99. Over the past 12 months, BAX's P/B has been as high as 5.21 and as low as 3.07, with a median of 3.78.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.52. This compares to its industry's average P/S of 1.57.
Finally, investors should note that BAX has a P/CF ratio of 10.80. 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 12.23. BAX's P/CF has been as high as 18.95 and as low as 8.96, with a median of 13.33, all within the past year.
NuVasive may be another strong Medical - Products stock to add to your shortlist. NUVA is a # 2 (Buy) stock with a Value grade of A.
Shares of NuVasive are currently trading at a forward earnings multiple of 19.29 and a PEG ratio of 0.96 compared to its industry's P/E and PEG ratios of 23.53 and 2.75, respectively.
Over the past year, NUVA's P/E has been as high as 26.17, as low as 15.02, with a median of 20.08; its PEG ratio has been as high as 1.99, as low as 0.88, with a median of 2.02 during the same time period.
NuVasive also has a P/B ratio of 2.59 compared to its industry's price-to-book ratio of 4.99. Over the past year, its P/B ratio has been as high as 3.82, as low as 2.21, with a median of 2.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Baxter International and NuVasive are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAX and NUVA feels like a great value stock at the moment.