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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is DaVita (DVA - Free Report) . DVA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.84, while its industry has an average P/E of 20.72. Over the past 52 weeks, DVA's Forward P/E has been as high as 15.73 and as low as 9.57, with a median of 12.98.
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. DVA has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.34.
Another great Medical - Outpatient and Home Healthcare stock you could consider is The Pennant Group (PNTG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The Pennant Group is trading at a forward earnings multiple of 18.34 at the moment, with a PEG ratio of 1.41. This compares to its industry's average P/E of 20.72 and average PEG ratio of 2.38.
PNTG's Forward P/E has been as high as 21.75 and as low as 13.48, with a median of 16.40. During the same time period, its PEG ratio has been as high as 1.67, as low as 1.04, with a median of 1.26.
The Pennant Group sports a P/B ratio of 3.25 as well; this compares to its industry's price-to-book ratio of 3.48. In the past 52 weeks, PNTG's P/B has been as high as 3.68, as low as 2.26, with a median of 2.82.
Value investors will likely look at more than just these metrics, but the above data helps show that DaVita and The Pennant Group are likely undervalued currently. And when considering the strength of its earnings outlook, DVA and PNTG sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy DaVita (DVA) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is DaVita (DVA - Free Report) . DVA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.84, while its industry has an average P/E of 20.72. Over the past 52 weeks, DVA's Forward P/E has been as high as 15.73 and as low as 9.57, with a median of 12.98.
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. DVA has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.34.
Another great Medical - Outpatient and Home Healthcare stock you could consider is The Pennant Group (PNTG - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
The Pennant Group is trading at a forward earnings multiple of 18.34 at the moment, with a PEG ratio of 1.41. This compares to its industry's average P/E of 20.72 and average PEG ratio of 2.38.
PNTG's Forward P/E has been as high as 21.75 and as low as 13.48, with a median of 16.40. During the same time period, its PEG ratio has been as high as 1.67, as low as 1.04, with a median of 1.26.
The Pennant Group sports a P/B ratio of 3.25 as well; this compares to its industry's price-to-book ratio of 3.48. In the past 52 weeks, PNTG's P/B has been as high as 3.68, as low as 2.26, with a median of 2.82.
Value investors will likely look at more than just these metrics, but the above data helps show that DaVita and The Pennant Group are likely undervalued currently. And when considering the strength of its earnings outlook, DVA and PNTG sticks out as one of the market's strongest value stocks.