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Should Value Investors Buy Smith & Nephew SNATS (SNN) Stock?
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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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Smith & Nephew SNATS (SNN - Free Report) . SNN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.81, which compares to its industry's average of 20.96. Over the past year, SNN's Forward P/E has been as high as 16.17 and as low as 11.60, with a median of 13.88.
We also note that SNN holds a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNN's industry has an average PEG of 1.96 right now. SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.11, all within the past year.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.62. 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. This stock's P/B looks solid versus its industry's average P/B of 5.18. Within the past 52 weeks, SNN's P/B has been as high as 2.66 and as low as 1.98, with a median of 2.38.
These are just a handful of the figures considered in Smith & Nephew SNATS'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 SNN is an impressive value stock right now.
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Should Value Investors Buy Smith & Nephew SNATS (SNN) Stock?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Smith & Nephew SNATS (SNN - Free Report) . SNN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.81, which compares to its industry's average of 20.96. Over the past year, SNN's Forward P/E has been as high as 16.17 and as low as 11.60, with a median of 13.88.
We also note that SNN holds a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNN's industry has an average PEG of 1.96 right now. SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.11, all within the past year.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.62. 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. This stock's P/B looks solid versus its industry's average P/B of 5.18. Within the past 52 weeks, SNN's P/B has been as high as 2.66 and as low as 1.98, with a median of 2.38.
These are just a handful of the figures considered in Smith & Nephew SNATS'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 SNN is an impressive value stock right now.