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Should Value Investors Buy Owens & Minor (OMI) 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 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 value investors might notice is Owens & Minor (OMI - Free Report) . OMI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.60. This compares to its industry's average Forward P/E of 20.51. OMI's Forward P/E has been as high as 17.06 and as low as 7.63, with a median of 12.43, all within the past year.
Another notable valuation metric for OMI is its P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. OMI's current P/B looks attractive when compared to its industry's average P/B of 4.66. Over the past 12 months, OMI's P/B has been as high as 2.31 and as low as 1.12, with a median of 1.63.
Investors could also keep in mind Phibro Animal Health (PAHC - Free Report) , an Medical - Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Phibro Animal Health is trading at a forward earnings multiple of 13.99 at the moment, with a PEG ratio of 5.78. This compares to its industry's average P/E of 20.51 and average PEG ratio of 2.24.
PAHC's Forward P/E has been as high as 14.01 and as low as 8.01, with a median of 10.26. During the same time period, its PEG ratio has been as high as 7.83, as low as 2.19, with a median of 4.40.
Furthermore, Phibro Animal Health holds a P/B ratio of 2.51 and its industry's price-to-book ratio is 4.66. PAHC's P/B has been as high as 2.51, as low as 1.42, with a median of 1.89 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens & Minor and Phibro Animal Health are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMI and PAHC feels like a great value stock at the moment.
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Should Value Investors Buy Owens & Minor (OMI) 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 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 value investors might notice is Owens & Minor (OMI - Free Report) . OMI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.60. This compares to its industry's average Forward P/E of 20.51. OMI's Forward P/E has been as high as 17.06 and as low as 7.63, with a median of 12.43, all within the past year.
Another notable valuation metric for OMI is its P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. OMI's current P/B looks attractive when compared to its industry's average P/B of 4.66. Over the past 12 months, OMI's P/B has been as high as 2.31 and as low as 1.12, with a median of 1.63.
Investors could also keep in mind Phibro Animal Health (PAHC - Free Report) , an Medical - Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Phibro Animal Health is trading at a forward earnings multiple of 13.99 at the moment, with a PEG ratio of 5.78. This compares to its industry's average P/E of 20.51 and average PEG ratio of 2.24.
PAHC's Forward P/E has been as high as 14.01 and as low as 8.01, with a median of 10.26. During the same time period, its PEG ratio has been as high as 7.83, as low as 2.19, with a median of 4.40.
Furthermore, Phibro Animal Health holds a P/B ratio of 2.51 and its industry's price-to-book ratio is 4.66. PAHC's P/B has been as high as 2.51, as low as 1.42, with a median of 1.89 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens & Minor and Phibro Animal Health are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMI and PAHC feels like a great value stock at the moment.