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ELV or AMEH: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and Apollo Medical Holdings, Inc. . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold). This means that ELV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ELV currently has a forward P/E ratio of 13.83, while AMEH has a forward P/E of 27.31. We also note that ELV has a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMEH currently has a PEG ratio of 2.38.
Another notable valuation metric for ELV is its P/B ratio of 3.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMEH has a P/B of 3.71.
These metrics, and several others, help ELV earn a Value grade of A, while AMEH has been given a Value grade of C.
ELV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ELV is likely the superior value option right now.
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ELV or AMEH: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical Services sector have probably already heard of Elevance Health (ELV - Free Report) and Apollo Medical Holdings, Inc. . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold). This means that ELV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ELV currently has a forward P/E ratio of 13.83, while AMEH has a forward P/E of 27.31. We also note that ELV has a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMEH currently has a PEG ratio of 2.38.
Another notable valuation metric for ELV is its P/B ratio of 3.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMEH has a P/B of 3.71.
These metrics, and several others, help ELV earn a Value grade of A, while AMEH has been given a Value grade of C.
ELV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ELV is likely the superior value option right now.