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Are Investors Undervaluing Koninklijke Philips (PHG) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.14. This compares to its industry's average Forward P/E of 21.13. Over the last 12 months, PHG's Forward P/E has been as high as 25.96 and as low as 9.44, with a median of 15.25.
Investors will also notice that PHG has a PEG ratio of 0.94. 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. PHG's industry currently sports an average PEG of 2.60. PHG's PEG has been as high as 1.26 and as low as 0.85, with a median of 0.99, all within the past year.
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. PHG has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.53.
Another great Medical - Products stock you could consider is QuidelOrtho (QDEL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
QuidelOrtho sports a P/B ratio of 1 as well; this compares to its industry's price-to-book ratio of 6.42. In the past 52 weeks, QDEL's P/B has been as high as 1.34, as low as 0.93, with a median of 1.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koninklijke Philips and QuidelOrtho are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHG and QDEL feels like a great value stock at the moment.
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Are Investors Undervaluing Koninklijke Philips (PHG) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.14. This compares to its industry's average Forward P/E of 21.13. Over the last 12 months, PHG's Forward P/E has been as high as 25.96 and as low as 9.44, with a median of 15.25.
Investors will also notice that PHG has a PEG ratio of 0.94. 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. PHG's industry currently sports an average PEG of 2.60. PHG's PEG has been as high as 1.26 and as low as 0.85, with a median of 0.99, all within the past year.
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. PHG has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.53.
Another great Medical - Products stock you could consider is QuidelOrtho (QDEL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
QuidelOrtho sports a P/B ratio of 1 as well; this compares to its industry's price-to-book ratio of 6.42. In the past 52 weeks, QDEL's P/B has been as high as 1.34, as low as 0.93, with a median of 1.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koninklijke Philips and QuidelOrtho are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHG and QDEL feels like a great value stock at the moment.