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Should Value Investors Buy HCA Healthcare (HCA) Stock?
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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.
HCA Healthcare (HCA - Free Report) is a stock many investors are watching right now. HCA 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 15.75. This compares to its industry's average Forward P/E of 15.90. Over the last 12 months, HCA's Forward P/E has been as high as 16.07 and as low as 11.15, with a median of 14.41.
Investors should also note that HCA holds a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HCA's industry has an average PEG of 1.69 right now. HCA's PEG has been as high as 1.97 and as low as 1.08, with a median of 1.54, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HCA Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HCA feels like a great value stock at the moment.
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Should Value Investors Buy HCA Healthcare (HCA) Stock?
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.
HCA Healthcare (HCA - Free Report) is a stock many investors are watching right now. HCA 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 15.75. This compares to its industry's average Forward P/E of 15.90. Over the last 12 months, HCA's Forward P/E has been as high as 16.07 and as low as 11.15, with a median of 14.41.
Investors should also note that HCA holds a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HCA's industry has an average PEG of 1.69 right now. HCA's PEG has been as high as 1.97 and as low as 1.08, with a median of 1.54, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HCA Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HCA feels like a great value stock at the moment.