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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.24 right now. For comparison, its industry sports an average P/E of 20.13. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 11.05, with a median of 16.07.
PETQ is also sporting a PEG ratio of 1.90. 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. PETQ's PEG compares to its industry's average PEG of 2.17. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 1.38, with a median of 2.14.
Another valuation metric that we should highlight is PETQ's P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to 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 4.52. Over the past 12 months, PETQ's P/B has been as high as 2.75 and as low as 1.51, with a median of 2.28.
Finally, we should also recognize that PETQ has a P/CF ratio of 8.87. 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 32.71. PETQ's P/CF has been as high as 13.39 and as low as 8.36, with a median of 9.98, all within the past year.
These are only a few of the key metrics included in PetIQ'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, PETQ looks like an impressive value stock at the moment.
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Is PetIQ (PETQ) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is PetIQ (PETQ - Free Report) . PETQ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.24 right now. For comparison, its industry sports an average P/E of 20.13. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 11.05, with a median of 16.07.
PETQ is also sporting a PEG ratio of 1.90. 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. PETQ's PEG compares to its industry's average PEG of 2.17. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 1.38, with a median of 2.14.
Another valuation metric that we should highlight is PETQ's P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to 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 4.52. Over the past 12 months, PETQ's P/B has been as high as 2.75 and as low as 1.51, with a median of 2.28.
Finally, we should also recognize that PETQ has a P/CF ratio of 8.87. 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 32.71. PETQ's P/CF has been as high as 13.39 and as low as 8.36, with a median of 9.98, all within the past year.
These are only a few of the key metrics included in PetIQ'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, PETQ looks like an impressive value stock at the moment.