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ELV or AMEH: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and Apollo Medical Holdings, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ELV has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ELV currently has a forward P/E ratio of 13.99, while AMEH has a forward P/E of 26.02. We also note that ELV has a PEG ratio of 1.16. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMEH currently has a PEG ratio of 2.26.
Another notable valuation metric for ELV is its P/B ratio of 2.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMEH has a P/B of 3.02.
These are just a few of the metrics contributing to ELV's Value grade of A and AMEH's Value grade of C.
ELV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ELV is likely the superior value option right now.
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ELV or AMEH: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and Apollo Medical Holdings, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ELV has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ELV currently has a forward P/E ratio of 13.99, while AMEH has a forward P/E of 26.02. We also note that ELV has a PEG ratio of 1.16. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMEH currently has a PEG ratio of 2.26.
Another notable valuation metric for ELV is its P/B ratio of 2.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMEH has a P/B of 3.02.
These are just a few of the metrics contributing to ELV's Value grade of A and AMEH's Value grade of C.
ELV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ELV is likely the superior value option right now.