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Are Investors Undervaluing OSI Systems (OSIS) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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.

OSI Systems (OSIS - Free Report) is a stock many investors are watching right now. OSIS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.92, while its industry has an average P/E of 20.82. OSIS's Forward P/E has been as high as 19.33 and as low as 12.94, with a median of 15.58, all within the past year.

Investors should also note that OSIS holds a PEG ratio of 1.45. 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. OSIS's industry currently sports an average PEG of 2.21. Over the past 52 weeks, OSIS's PEG has been as high as 1.76 and as low as 1.18, with a median of 1.42.

Investors should also recognize that OSIS has a P/B ratio of 2.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.30. Over the past 12 months, OSIS's P/B has been as high as 3.17 and as low as 2.37, with a median of 2.78.

Finally, investors will want to recognize that OSIS has a P/CF ratio of 15.03. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.65. Over the past year, OSIS's P/CF has been as high as 18.07 and as low as 10.86, with a median of 15.49.

These are only a few of the key metrics included in OSI Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSIS looks like an impressive value stock at the moment.


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