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Should Value Investors Buy Smith & Nephew SNATS (SNN) Stock?
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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Smith & Nephew SNATS (SNN - Free Report) . SNN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.09 right now. For comparison, its industry sports an average P/E of 19.12. Over the past 52 weeks, SNN's Forward P/E has been as high as 19.03 and as low as 12.80, with a median of 16.41.
SNN is also sporting a PEG ratio of 1.16. 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. SNN's PEG compares to its industry's average PEG of 1.84. Over the past 52 weeks, SNN's PEG has been as high as 3.26 and as low as 1.16, with a median of 2.06.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.03. The P/B ratio pits a stock's market value against 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 4.04. Over the past year, SNN's P/B has been as high as 2.72 and as low as 1.77, with a median of 2.34.
These are only a few of the key metrics included in Smith & Nephew SNATS's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNN looks like an impressive value stock at the moment.
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Should Value Investors Buy Smith & Nephew SNATS (SNN) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Smith & Nephew SNATS (SNN - Free Report) . SNN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.09 right now. For comparison, its industry sports an average P/E of 19.12. Over the past 52 weeks, SNN's Forward P/E has been as high as 19.03 and as low as 12.80, with a median of 16.41.
SNN is also sporting a PEG ratio of 1.16. 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. SNN's PEG compares to its industry's average PEG of 1.84. Over the past 52 weeks, SNN's PEG has been as high as 3.26 and as low as 1.16, with a median of 2.06.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.03. The P/B ratio pits a stock's market value against 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 4.04. Over the past year, SNN's P/B has been as high as 2.72 and as low as 1.77, with a median of 2.34.
These are only a few of the key metrics included in Smith & Nephew SNATS's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNN looks like an impressive value stock at the moment.