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Should Value Investors Buy Phibro Animal Health (PAHC) Stock?
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Phibro Animal Health (PAHC - Free Report) . PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.60, while its industry has an average P/E of 21.26. Over the past 52 weeks, PAHC's Forward P/E has been as high as 12.42 and as low as 8.01, with a median of 10.29.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 9.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 33.95. Over the past year, PAHC's P/CF has been as high as 10.20 and as low as 6.94, with a median of 8.80.
If you're looking for another solid Medical - Products value stock, take a look at Smith & Nephew SNATS (SNN - Free Report) . SNN is a # 2 (Buy) stock with a Value score of A.
Smith & Nephew SNATS is trading at a forward earnings multiple of 14.11 at the moment, with a PEG ratio of 1.35. This compares to its industry's average P/E of 21.26 and average PEG ratio of 2.45.
Over the last 12 months, SNN's P/E has been as high as 19.03, as low as 11.69, with a median of 15.50, and its PEG ratio has been as high as 3.09, as low as 1.10, with a median of 1.44.
Smith & Nephew SNATS sports a P/B ratio of 2.33 as well; this compares to its industry's price-to-book ratio of 6.90. In the past 52 weeks, SNN's P/B has been as high as 2.72, as low as 1.80, with a median of 2.33.
These are only a few of the key metrics included in Phibro Animal Health and Smith & Nephew SNATS strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAHC and SNN look like an impressive value stock at the moment.
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Should Value Investors Buy Phibro Animal Health (PAHC) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Phibro Animal Health (PAHC - Free Report) . PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.60, while its industry has an average P/E of 21.26. Over the past 52 weeks, PAHC's Forward P/E has been as high as 12.42 and as low as 8.01, with a median of 10.29.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 9.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 33.95. Over the past year, PAHC's P/CF has been as high as 10.20 and as low as 6.94, with a median of 8.80.
If you're looking for another solid Medical - Products value stock, take a look at Smith & Nephew SNATS (SNN - Free Report) . SNN is a # 2 (Buy) stock with a Value score of A.
Smith & Nephew SNATS is trading at a forward earnings multiple of 14.11 at the moment, with a PEG ratio of 1.35. This compares to its industry's average P/E of 21.26 and average PEG ratio of 2.45.
Over the last 12 months, SNN's P/E has been as high as 19.03, as low as 11.69, with a median of 15.50, and its PEG ratio has been as high as 3.09, as low as 1.10, with a median of 1.44.
Smith & Nephew SNATS sports a P/B ratio of 2.33 as well; this compares to its industry's price-to-book ratio of 6.90. In the past 52 weeks, SNN's P/B has been as high as 2.72, as low as 1.80, with a median of 2.33.
These are only a few of the key metrics included in Phibro Animal Health and Smith & Nephew SNATS strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAHC and SNN look like an impressive value stock at the moment.