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Should Value Investors Buy Aveanna Healthcare (AVAH) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 Aveanna Healthcare (AVAH - Free Report) . AVAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 18.05, which compares to its industry's average of 18.50. Over the past year, AVAH's Forward P/E has been as high as 975.35 and as low as -7,467.37, with a median of 51.25.

Finally, investors should note that AVAH has a P/CF ratio of 20.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.13. Over the past 52 weeks, AVAH's P/CF has been as high as 72.26 and as low as -38.60, with a median of 27.60.

These are just a handful of the figures considered in Aveanna Healthcare'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 AVAH is an impressive value stock right now.


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