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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
DaVita (DVA - Free Report) is a stock many investors are watching right now. DVA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.39. This compares to its industry's average Forward P/E of 20.74. Over the last 12 months, DVA's Forward P/E has been as high as 15.73 and as low as 9.57, with a median of 12.93.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DVA has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.41.
If you're looking for another solid Medical - Outpatient and Home Healthcare value stock, take a look at The Pennant Group (PNTG - Free Report) . PNTG is a # 2 (Buy) stock with a Value score of A.
The Pennant Group is currently trading with a Forward P/E ratio of 16.84 while its PEG ratio sits at 1.30. Both of the company's metrics compare favorably to its industry's average P/E of 20.74 and average PEG ratio of 2.40.
Over the last 12 months, PNTG's P/E has been as high as 21.75, as low as 13.48, with a median of 16.23, and its PEG ratio has been as high as 1.67, as low as 1.04, with a median of 1.25.
Additionally, The Pennant Group has a P/B ratio of 2.96 while its industry's price-to-book ratio sits at 3.46. For PNTG, this valuation metric has been as high as 3.68, as low as 2.26, with a median of 2.76 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DaVita and The Pennant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DVA and PNTG feels like a great value stock at the moment.
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Should Value Investors Buy DaVita (DVA) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
DaVita (DVA - Free Report) is a stock many investors are watching right now. DVA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.39. This compares to its industry's average Forward P/E of 20.74. Over the last 12 months, DVA's Forward P/E has been as high as 15.73 and as low as 9.57, with a median of 12.93.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DVA has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.41.
If you're looking for another solid Medical - Outpatient and Home Healthcare value stock, take a look at The Pennant Group (PNTG - Free Report) . PNTG is a # 2 (Buy) stock with a Value score of A.
The Pennant Group is currently trading with a Forward P/E ratio of 16.84 while its PEG ratio sits at 1.30. Both of the company's metrics compare favorably to its industry's average P/E of 20.74 and average PEG ratio of 2.40.
Over the last 12 months, PNTG's P/E has been as high as 21.75, as low as 13.48, with a median of 16.23, and its PEG ratio has been as high as 1.67, as low as 1.04, with a median of 1.25.
Additionally, The Pennant Group has a P/B ratio of 2.96 while its industry's price-to-book ratio sits at 3.46. For PNTG, this valuation metric has been as high as 3.68, as low as 2.26, with a median of 2.76 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that DaVita and The Pennant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DVA and PNTG feels like a great value stock at the moment.