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Should Value Investors Buy Noah Holdings (NOAH) 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.
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.
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.
Noah Holdings (NOAH - Free Report) is a stock many investors are watching right now. NOAH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.93, which compares to its industry's average of 17.65. Over the past 52 weeks, NOAH's Forward P/E has been as high as 10.83 and as low as 4.67, with a median of 7.34.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NOAH has a P/S ratio of 2.24. This compares to its industry's average P/S of 3.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Noah Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOAH feels like a great value stock at the moment.
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Should Value Investors Buy Noah Holdings (NOAH) 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.
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.
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.
Noah Holdings (NOAH - Free Report) is a stock many investors are watching right now. NOAH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.93, which compares to its industry's average of 17.65. Over the past 52 weeks, NOAH's Forward P/E has been as high as 10.83 and as low as 4.67, with a median of 7.34.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NOAH has a P/S ratio of 2.24. This compares to its industry's average P/S of 3.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Noah Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOAH feels like a great value stock at the moment.