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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is Humana (HUM - Free Report) . HUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.84, while its industry has an average P/E of 16.74. HUM's Forward P/E has been as high as 20.50 and as low as 14.84, with a median of 18.02, all within the past year.
Investors should also note that HUM holds a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUM's industry currently sports an average PEG of 1.27. Over the past 52 weeks, HUM's PEG has been as high as 1.49 and as low as 1.10, with a median of 1.30.
We should also highlight that HUM has a P/B ratio of 3.35. The P/B is a method of comparing a stock's market value to 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 3.88. Over the past 12 months, HUM's P/B has been as high as 4.37 and as low as 3.35, with a median of 3.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HUM has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.62.
Finally, investors will want to recognize that HUM has a P/CF ratio of 14.11. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HUM's current P/CF looks attractive when compared to its industry's average P/CF of 15.26. Over the past year, HUM's P/CF has been as high as 19.76 and as low as 14.08, with a median of 16.69.
Another great Medical - HMOs stock you could consider is Molina Healthcare (MOH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Molina Healthcare are currently trading at a forward earnings multiple of 13.39 and a PEG ratio of 1.02 compared to its industry's P/E and PEG ratios of 16.74 and 1.27, respectively.
MOH's price-to-earnings ratio has been as high as 18.76 and as low as 12.61, with a median of 15.52, while its PEG ratio has been as high as 1.12 and as low as 0.65, with a median of 0.94, all within the past year.
Additionally, Molina Healthcare has a P/B ratio of 5.14 while its industry's price-to-book ratio sits at 3.88. For MOH, this valuation metric has been as high as 7.26, as low as 4.74, with a median of 5.96 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Humana and Molina Healthcare are likely undervalued currently. And when considering the strength of its earnings outlook, HUM and MOH sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Humana (HUM) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is Humana (HUM - Free Report) . HUM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.84, while its industry has an average P/E of 16.74. HUM's Forward P/E has been as high as 20.50 and as low as 14.84, with a median of 18.02, all within the past year.
Investors should also note that HUM holds a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUM's industry currently sports an average PEG of 1.27. Over the past 52 weeks, HUM's PEG has been as high as 1.49 and as low as 1.10, with a median of 1.30.
We should also highlight that HUM has a P/B ratio of 3.35. The P/B is a method of comparing a stock's market value to 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 3.88. Over the past 12 months, HUM's P/B has been as high as 4.37 and as low as 3.35, with a median of 3.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HUM has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.62.
Finally, investors will want to recognize that HUM has a P/CF ratio of 14.11. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HUM's current P/CF looks attractive when compared to its industry's average P/CF of 15.26. Over the past year, HUM's P/CF has been as high as 19.76 and as low as 14.08, with a median of 16.69.
Another great Medical - HMOs stock you could consider is Molina Healthcare (MOH - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Molina Healthcare are currently trading at a forward earnings multiple of 13.39 and a PEG ratio of 1.02 compared to its industry's P/E and PEG ratios of 16.74 and 1.27, respectively.
MOH's price-to-earnings ratio has been as high as 18.76 and as low as 12.61, with a median of 15.52, while its PEG ratio has been as high as 1.12 and as low as 0.65, with a median of 0.94, all within the past year.
Additionally, Molina Healthcare has a P/B ratio of 5.14 while its industry's price-to-book ratio sits at 3.88. For MOH, this valuation metric has been as high as 7.26, as low as 4.74, with a median of 5.96 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Humana and Molina Healthcare are likely undervalued currently. And when considering the strength of its earnings outlook, HUM and MOH sticks out as one of the market's strongest value stocks.