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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.
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.
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 McKesson (MCK - Free Report) . MCK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.98, while its industry has an average P/E of 18.58. Over the past 52 weeks, MCK's Forward P/E has been as high as 16.26 and as low as 12.75, with a median of 14.82.
Investors will also notice that MCK has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCK's PEG compares to its industry's average PEG of 1.73. MCK's PEG has been as high as 1.55 and as low as 1.23, with a median of 1.39, all within the past year.
Finally, investors will want to recognize that MCK has a P/CF ratio of 15.63. 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. MCK's current P/CF looks attractive when compared to its industry's average P/CF of 20.18. Over the past 52 weeks, MCK's P/CF has been as high as 15.88 and as low as 11.52, with a median of 13.25.
These are just a handful of the figures considered in McKesson'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 MCK is an impressive value stock right now.
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Should Value Investors Buy McKesson (MCK) 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.
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.
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 McKesson (MCK - Free Report) . MCK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.98, while its industry has an average P/E of 18.58. Over the past 52 weeks, MCK's Forward P/E has been as high as 16.26 and as low as 12.75, with a median of 14.82.
Investors will also notice that MCK has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCK's PEG compares to its industry's average PEG of 1.73. MCK's PEG has been as high as 1.55 and as low as 1.23, with a median of 1.39, all within the past year.
Finally, investors will want to recognize that MCK has a P/CF ratio of 15.63. 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. MCK's current P/CF looks attractive when compared to its industry's average P/CF of 20.18. Over the past 52 weeks, MCK's P/CF has been as high as 15.88 and as low as 11.52, with a median of 13.25.
These are just a handful of the figures considered in McKesson'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 MCK is an impressive value stock right now.