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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company value investors might notice is Centene (CNC - Free Report) . CNC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.50, while its industry has an average P/E of 16.54. Over the past 52 weeks, CNC's Forward P/E has been as high as 11.76 and as low as 9.31, with a median of 10.44.
We also note that CNC holds a PEG ratio of 0.96. 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. CNC's industry has an average PEG of 1.28 right now. Over the last 12 months, CNC's PEG has been as high as 1.01 and as low as 0.71, with a median of 0.88.
Another notable valuation metric for CNC is its P/B ratio of 1.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CNC's current P/B looks attractive when compared to its industry's average P/B of 3.37. Over the past 12 months, CNC's P/B has been as high as 1.72 and as low as 1.29, with a median of 1.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNC has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.52.
Finally, our model also underscores that CNC has a P/CF ratio of 10.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.13. Over the past 52 weeks, CNC's P/CF has been as high as 14.91 and as low as 8.17, with a median of 10.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Centene is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNC feels like a great value stock at the moment.
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Should Value Investors Buy Centene (CNC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company value investors might notice is Centene (CNC - Free Report) . CNC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.50, while its industry has an average P/E of 16.54. Over the past 52 weeks, CNC's Forward P/E has been as high as 11.76 and as low as 9.31, with a median of 10.44.
We also note that CNC holds a PEG ratio of 0.96. 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. CNC's industry has an average PEG of 1.28 right now. Over the last 12 months, CNC's PEG has been as high as 1.01 and as low as 0.71, with a median of 0.88.
Another notable valuation metric for CNC is its P/B ratio of 1.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CNC's current P/B looks attractive when compared to its industry's average P/B of 3.37. Over the past 12 months, CNC's P/B has been as high as 1.72 and as low as 1.29, with a median of 1.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNC has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.52.
Finally, our model also underscores that CNC has a P/CF ratio of 10.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.13. Over the past 52 weeks, CNC's P/CF has been as high as 14.91 and as low as 8.17, with a median of 10.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Centene is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CNC feels like a great value stock at the moment.