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.
Are Investors Undervaluing PetIQ (PETQ) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 PetIQ (PETQ - Free Report) . PETQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.48 right now. For comparison, its industry sports an average P/E of 19.92. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 6.15, with a median of 15.48.
We also note that PETQ holds a PEG ratio of 1.94. 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. PETQ's industry currently sports an average PEG of 2.39. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 0.77, with a median of 1.94.
Investors should also recognize that PETQ has a P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.12. Over the past year, PETQ's P/B has been as high as 2.75 and as low as 1.21, with a median of 1.73.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 9.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PETQ's current P/CF looks attractive when compared to its industry's average P/CF of 31.43. Within the past 12 months, PETQ's P/CF has been as high as 13.39 and as low as 7.74, with a median of 10.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PetIQ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PETQ feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing PetIQ (PETQ) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 PetIQ (PETQ - Free Report) . PETQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.48 right now. For comparison, its industry sports an average P/E of 19.92. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 6.15, with a median of 15.48.
We also note that PETQ holds a PEG ratio of 1.94. 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. PETQ's industry currently sports an average PEG of 2.39. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 0.77, with a median of 1.94.
Investors should also recognize that PETQ has a P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.12. Over the past year, PETQ's P/B has been as high as 2.75 and as low as 1.21, with a median of 1.73.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 9.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PETQ's current P/CF looks attractive when compared to its industry's average P/CF of 31.43. Within the past 12 months, PETQ's P/CF has been as high as 13.39 and as low as 7.74, with a median of 10.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PetIQ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PETQ feels like a great value stock at the moment.