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Are Investors Undervaluing Edgewell Personal Care (EPC) 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 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 stock to keep an eye on is Edgewell Personal Care (EPC - Free Report) . EPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.11, while its industry has an average P/E of 17.69. Over the last 12 months, EPC's Forward P/E has been as high as 14.66 and as low as 11.79, with a median of 12.91.

Finally, we should also recognize that EPC has a P/CF ratio of 8.90. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EPC's current P/CF looks attractive when compared to its industry's average P/CF of 18.90. Over the past 52 weeks, EPC's P/CF has been as high as 10.14 and as low as 8.27, with a median of 9.23.

These are just a handful of the figures considered in Edgewell Personal Care'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 EPC is an impressive value stock right now.


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