We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for PETQ is its P/B ratio of 2.50. 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. PETQ's current P/B looks attractive when compared to its industry's average P/B of 3.86. Over the past year, PETQ's P/B has been as high as 2.79 and as low as 0.98, with a median of 1.66.
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. PETQ has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.55.
Finally, our model also underscores that PETQ has a P/CF ratio of 12.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PETQ's P/CF compares to its industry's average P/CF of 29.58. Over the past 52 weeks, PETQ's P/CF has been as high as 13.68 and as low as 7.28, with a median of 10.49.
Koninklijke Philips (PHG - Free Report) may be another strong Medical - Products stock to add to your shortlist. PHG is a # 2 (Buy) stock with a Value grade of A.
Koninklijke Philips is currently trading with a Forward P/E ratio of 13.86 while its PEG ratio sits at 0.94. Both of the company's metrics compare favorably to its industry's average P/E of 18.43 and average PEG ratio of 2.30.
Koninklijke Philips also has a P/B ratio of 1.41 compared to its industry's price-to-book ratio of 3.86. Over the past year, its P/B ratio has been as high as 1.62, as low as 0.71, with a median of 1.10.
These are just a handful of the figures considered in PetIQ and Koninklijke Philips's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PETQ and PHG is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy PetIQ (PETQ) 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for PETQ is its P/B ratio of 2.50. 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. PETQ's current P/B looks attractive when compared to its industry's average P/B of 3.86. Over the past year, PETQ's P/B has been as high as 2.79 and as low as 0.98, with a median of 1.66.
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. PETQ has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.55.
Finally, our model also underscores that PETQ has a P/CF ratio of 12.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PETQ's P/CF compares to its industry's average P/CF of 29.58. Over the past 52 weeks, PETQ's P/CF has been as high as 13.68 and as low as 7.28, with a median of 10.49.
Koninklijke Philips (PHG - Free Report) may be another strong Medical - Products stock to add to your shortlist. PHG is a # 2 (Buy) stock with a Value grade of A.
Koninklijke Philips is currently trading with a Forward P/E ratio of 13.86 while its PEG ratio sits at 0.94. Both of the company's metrics compare favorably to its industry's average P/E of 18.43 and average PEG ratio of 2.30.
Koninklijke Philips also has a P/B ratio of 1.41 compared to its industry's price-to-book ratio of 3.86. Over the past year, its P/B ratio has been as high as 1.62, as low as 0.71, with a median of 1.10.
These are just a handful of the figures considered in PetIQ and Koninklijke Philips's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PETQ and PHG is an impressive value stock right now.