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Should Value Investors Buy Koninklijke Philips (PHG) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Koninklijke Philips (PHG - Free Report) is a stock many investors are watching right now. PHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 17.08, which compares to its industry's average of 22.91. Over the past 52 weeks, PHG's Forward P/E has been as high as 25.96 and as low as 9.44, with a median of 14.73.
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. PHG has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koninklijke Philips is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHG feels like a great value stock at the moment.
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Should Value Investors Buy Koninklijke Philips (PHG) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Koninklijke Philips (PHG - Free Report) is a stock many investors are watching right now. PHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 17.08, which compares to its industry's average of 22.91. Over the past 52 weeks, PHG's Forward P/E has been as high as 25.96 and as low as 9.44, with a median of 14.73.
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. PHG has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koninklijke Philips is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHG feels like a great value stock at the moment.