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Are Investors Undervaluing Option Care Health (OPCH) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Option Care Health (OPCH - Free Report) is a stock many investors are watching right now. OPCH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
OPCH is also sporting a PEG ratio of 1.62. 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. OPCH's industry has an average PEG of 1.83 right now. OPCH's PEG has been as high as 2.54 and as low as 1.07, with a median of 1.38, all within the past year.
Investors should also recognize that OPCH has a P/B ratio of 3.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OPCH's current P/B looks attractive when compared to its industry's average P/B of 3.72. OPCH's P/B has been as high as 4.37 and as low as 3.28, with a median of 4.01, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPCH has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.24.
These are only a few of the key metrics included in Option Care Health'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, OPCH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Option Care Health (OPCH) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Option Care Health (OPCH - Free Report) is a stock many investors are watching right now. OPCH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
OPCH is also sporting a PEG ratio of 1.62. 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. OPCH's industry has an average PEG of 1.83 right now. OPCH's PEG has been as high as 2.54 and as low as 1.07, with a median of 1.38, all within the past year.
Investors should also recognize that OPCH has a P/B ratio of 3.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OPCH's current P/B looks attractive when compared to its industry's average P/B of 3.72. OPCH's P/B has been as high as 4.37 and as low as 3.28, with a median of 4.01, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPCH has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.24.
These are only a few of the key metrics included in Option Care Health'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, OPCH looks like an impressive value stock at the moment.