Back to top

Image: Bigstock

Is Owens & Minor (OMI) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Owens & Minor (OMI - Free Report) . OMI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.50, which compares to its industry's average of 21.18. Over the last 12 months, OMI's Forward P/E has been as high as 15.02 and as low as 6.10, with a median of 10.84.

Finally, investors will want to recognize that OMI has a P/CF ratio of 8.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OMI's current P/CF looks attractive when compared to its industry's average P/CF of 33.84. Within the past 12 months, OMI's P/CF has been as high as 10.14 and as low as 3.62, with a median of 6.73.

Koninklijke Philips (PHG - Free Report) may be another strong Medical - Products stock to add to your shortlist. PHG is a # 1 (Strong Buy) stock with a Value grade of A.

Koninklijke Philips also has a P/B ratio of 1.68 compared to its industry's price-to-book ratio of 6.92. Over the past year, its P/B ratio has been as high as 1.69, as low as 1.02, with a median of 1.43.

These are just a handful of the figures considered in Owens & Minor and Koninklijke Philips'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 OMI and PHG is an impressive value stock right now.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Koninklijke Philips N.V. (PHG) - free report >>

Owens & Minor, Inc. (OMI) - free report >>

Published in