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Are Investors Undervaluing Smith & Nephew SNATS (SNN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Smith & Nephew SNATS (SNN - Free Report) is a stock many investors are watching right now. SNN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.12, while its industry has an average P/E of 21.65. Over the past year, SNN's Forward P/E has been as high as 17.28 and as low as 11.60, with a median of 13.88.
Investors should also note that SNN holds a PEG ratio of 0.94. 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. SNN's PEG compares to its industry's average PEG of 2.03. Within the past year, SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.05.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.95. Investors use the P/B ratio to look at a stock's market value versus 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 5.15. Over the past year, SNN's P/B has been as high as 2.97 and as low as 1.98, with a median of 2.37.
Another great Medical - Products stock you could consider is Zimmer Biomet (ZBH - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of Zimmer Biomet currently hold a Forward P/E ratio of 12.62, and its PEG ratio is 2.03. In comparison, its industry sports average P/E and PEG ratios of 21.65 and 2.03.
ZBH's price-to-earnings ratio has been as high as 13.71 and as low as 10.73, with a median of 12.40, while its PEG ratio has been as high as 2.36 and as low as 1.66, with a median of 1.91, all within the past year.
Zimmer Biomet sports a P/B ratio of 1.66 as well; this compares to its industry's price-to-book ratio of 5.15. In the past 52 weeks, ZBH's P/B has been as high as 1.87, as low as 1.43, with a median of 1.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Smith & Nephew SNATS and Zimmer Biomet are likely undervalued currently. And when considering the strength of its earnings outlook, SNN and ZBH sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Smith & Nephew SNATS (SNN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Smith & Nephew SNATS (SNN - Free Report) is a stock many investors are watching right now. SNN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.12, while its industry has an average P/E of 21.65. Over the past year, SNN's Forward P/E has been as high as 17.28 and as low as 11.60, with a median of 13.88.
Investors should also note that SNN holds a PEG ratio of 0.94. 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. SNN's PEG compares to its industry's average PEG of 2.03. Within the past year, SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.05.
Another valuation metric that we should highlight is SNN's P/B ratio of 2.95. Investors use the P/B ratio to look at a stock's market value versus 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 5.15. Over the past year, SNN's P/B has been as high as 2.97 and as low as 1.98, with a median of 2.37.
Another great Medical - Products stock you could consider is Zimmer Biomet (ZBH - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of Zimmer Biomet currently hold a Forward P/E ratio of 12.62, and its PEG ratio is 2.03. In comparison, its industry sports average P/E and PEG ratios of 21.65 and 2.03.
ZBH's price-to-earnings ratio has been as high as 13.71 and as low as 10.73, with a median of 12.40, while its PEG ratio has been as high as 2.36 and as low as 1.66, with a median of 1.91, all within the past year.
Zimmer Biomet sports a P/B ratio of 1.66 as well; this compares to its industry's price-to-book ratio of 5.15. In the past 52 weeks, ZBH's P/B has been as high as 1.87, as low as 1.43, with a median of 1.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Smith & Nephew SNATS and Zimmer Biomet are likely undervalued currently. And when considering the strength of its earnings outlook, SNN and ZBH sticks out as one of the market's strongest value stocks.