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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.72, which compares to its industry's average of 20.03. PETQ's Forward P/E has been as high as 22.18 and as low as 6.15, with a median of 15.62, all within the past year.
We also note that PETQ holds a PEG ratio of 1.96. 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. PETQ's PEG compares to its industry's average PEG of 2.40. Over the last 12 months, PETQ's PEG has been as high as 2.77 and as low as 0.77, with a median of 1.95.
Investors should also recognize that PETQ has a P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.30. Within the past 52 weeks, PETQ's P/B has been as high as 2.75 and as low as 1.21, with a median of 1.80.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 9.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PETQ's P/CF compares to its industry's average P/CF of 31.22. Over the past year, PETQ's P/CF has been as high as 13.39 and as low as 7.74, with a median of 9.95.
These are just a handful of the figures considered in PetIQ'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 is an impressive value stock right now.
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Should Value Investors Buy PetIQ (PETQ) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.72, which compares to its industry's average of 20.03. PETQ's Forward P/E has been as high as 22.18 and as low as 6.15, with a median of 15.62, all within the past year.
We also note that PETQ holds a PEG ratio of 1.96. 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. PETQ's PEG compares to its industry's average PEG of 2.40. Over the last 12 months, PETQ's PEG has been as high as 2.77 and as low as 0.77, with a median of 1.95.
Investors should also recognize that PETQ has a P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.30. Within the past 52 weeks, PETQ's P/B has been as high as 2.75 and as low as 1.21, with a median of 1.80.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 9.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PETQ's P/CF compares to its industry's average P/CF of 31.22. Over the past year, PETQ's P/CF has been as high as 13.39 and as low as 7.74, with a median of 9.95.
These are just a handful of the figures considered in PetIQ'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 is an impressive value stock right now.