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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is HCA Healthcare (HCA - Free Report) . HCA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.42, which compares to its industry's average of 15.76. Over the past 52 weeks, HCA's Forward P/E has been as high as 16.07 and as low as 11.15, with a median of 14.46.
We also note that HCA holds a PEG ratio of 1.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HCA's PEG compares to its industry's average PEG of 1.63. 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 are just a handful of the figures considered in HCA Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HCA is an impressive value stock right now.
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is HCA Healthcare (HCA - Free Report) . HCA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.42, which compares to its industry's average of 15.76. Over the past 52 weeks, HCA's Forward P/E has been as high as 16.07 and as low as 11.15, with a median of 14.46.
We also note that HCA holds a PEG ratio of 1.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HCA's PEG compares to its industry's average PEG of 1.63. 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 are just a handful of the figures considered in HCA Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HCA is an impressive value stock right now.