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Should Value Investors Buy Premier (PINC) Stock?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Premier (PINC - Free Report) . PINC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is PINC's P/B ratio of 1.35. 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. PINC's current P/B looks attractive when compared to its industry's average P/B of 1.46. PINC's P/B has been as high as 1.40 and as low as 0.93, with a median of 1.07, over the past year.

Finally, we should also recognize that PINC has a P/CF ratio of 10.91. 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. PINC's P/CF compares to its industry's average P/CF of 14.28. Over the past year, PINC's P/CF has been as high as 18.58 and as low as 7.11, with a median of 9.18.

These are just a handful of the figures considered in Premier'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 PINC is an impressive value stock right now.


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