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Are Investors Undervaluing Dentsply Sirona (XRAY) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company to watch right now is Dentsply Sirona (XRAY - Free Report) . XRAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.51, which compares to its industry's average of 16.54. XRAY's Forward P/E has been as high as 12.99 and as low as 6.77, with a median of 10.10, all within the past year.
XRAY is also sporting a PEG ratio of 1.15. 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. XRAY's industry currently sports an average PEG of 1.77. Over the last 12 months, XRAY's PEG has been as high as 1.91 and as low as 0.84, with a median of 1.11.
Investors should also recognize that XRAY has a P/B ratio of 1.64. The P/B ratio pits a stock's market value against 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 4.43. Over the past 12 months, XRAY's P/B has been as high as 2.16 and as low as 1.24, with a median of 1.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. XRAY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.47.
Finally, investors will want to recognize that XRAY has a P/CF ratio of 15.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. XRAY's P/CF compares to its industry's average P/CF of 17.38. XRAY's P/CF has been as high as 19.05 and as low as 7.83, with a median of 11.85, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Dentsply Sirona is likely undervalued currently. And when considering the strength of its earnings outlook, XRAY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Dentsply Sirona (XRAY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company to watch right now is Dentsply Sirona (XRAY - Free Report) . XRAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.51, which compares to its industry's average of 16.54. XRAY's Forward P/E has been as high as 12.99 and as low as 6.77, with a median of 10.10, all within the past year.
XRAY is also sporting a PEG ratio of 1.15. 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. XRAY's industry currently sports an average PEG of 1.77. Over the last 12 months, XRAY's PEG has been as high as 1.91 and as low as 0.84, with a median of 1.11.
Investors should also recognize that XRAY has a P/B ratio of 1.64. The P/B ratio pits a stock's market value against 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 4.43. Over the past 12 months, XRAY's P/B has been as high as 2.16 and as low as 1.24, with a median of 1.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. XRAY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.47.
Finally, investors will want to recognize that XRAY has a P/CF ratio of 15.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. XRAY's P/CF compares to its industry's average P/CF of 17.38. XRAY's P/CF has been as high as 19.05 and as low as 7.83, with a median of 11.85, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Dentsply Sirona is likely undervalued currently. And when considering the strength of its earnings outlook, XRAY sticks out at as one of the market's strongest value stocks.