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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is DaVita (DVA - Free Report) . DVA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.61. This compares to its industry's average Forward P/E of 20.61. 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 13.03.
Investors will also notice that DVA has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DVA's PEG compares to its industry's average PEG of 1.53. Over the last 12 months, DVA's PEG has been as high as 1.87 and as low as 0.56, with a median of 0.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVA has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.37.
Encompass Health (EHC - Free Report) may be another strong Medical - Outpatient and Home Healthcare stock to add to your shortlist. EHC is a # 2 (Buy) stock with a Value grade of A.
Shares of Encompass Health currently holds a Forward P/E ratio of 18.42, and its PEG ratio is 1.20. In comparison, its industry sports average P/E and PEG ratios of 20.61 and 1.53.
EHC's Forward P/E has been as high as 20.79 and as low as 16.26, with a median of 18.69. During the same time period, its PEG ratio has been as high as 1.77, as low as 1.16, with a median of 1.40.
Encompass Health also has a P/B ratio of 3.27 compared to its industry's price-to-book ratio of 3.55. Over the past year, its P/B ratio has been as high as 3.57, as low as 2.82, with a median of 3.20.
These are only a few of the key metrics included in DaVita and Encompass Health strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DVA and EHC look like an impressive value stock at the moment.
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is DaVita (DVA - Free Report) . DVA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.61. This compares to its industry's average Forward P/E of 20.61. 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 13.03.
Investors will also notice that DVA has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DVA's PEG compares to its industry's average PEG of 1.53. Over the last 12 months, DVA's PEG has been as high as 1.87 and as low as 0.56, with a median of 0.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVA has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.37.
Encompass Health (EHC - Free Report) may be another strong Medical - Outpatient and Home Healthcare stock to add to your shortlist. EHC is a # 2 (Buy) stock with a Value grade of A.
Shares of Encompass Health currently holds a Forward P/E ratio of 18.42, and its PEG ratio is 1.20. In comparison, its industry sports average P/E and PEG ratios of 20.61 and 1.53.
EHC's Forward P/E has been as high as 20.79 and as low as 16.26, with a median of 18.69. During the same time period, its PEG ratio has been as high as 1.77, as low as 1.16, with a median of 1.40.
Encompass Health also has a P/B ratio of 3.27 compared to its industry's price-to-book ratio of 3.55. Over the past year, its P/B ratio has been as high as 3.57, as low as 2.82, with a median of 3.20.
These are only a few of the key metrics included in DaVita and Encompass Health strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DVA and EHC look like an impressive value stock at the moment.