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Should Value Investors Buy Grifols (GRFS) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Grifols (GRFS - Free Report) is a stock many investors are watching right now. GRFS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that GRFS has a P/B ratio of 0.81. The P/B ratio is used to compare a stock's market value with 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 1.73. GRFS's P/B has been as high as 0.86 and as low as 0.49, with a median of 0.65, over the past year.

Finally, investors should note that GRFS has a P/CF ratio of 9.92. 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 13.40. Within the past 12 months, GRFS's P/CF has been as high as 13.04 and as low as 9.04, with a median of 10.84.

If you're looking for another solid Medical - Drugs value stock, take a look at USANA Health Sciences (USNA - Free Report) . USNA is a Zacks Rank of #2 (Buy) stock with a Value score of A.

USANA Health Sciences is trading at a forward earnings multiple of 10.09 at the moment, with a PEG ratio of 0.84. This compares to its industry's average P/E of 42.84 and average PEG ratio of 1.94.

Over the past year, USNA's P/E has been as high as 16.65, as low as 7.83, with a median of 10.66; its PEG ratio has been as high as 1.39, as low as 0.65, with a median of 0.89 during the same time period.

USANA Health Sciences also has a P/B ratio of 1.11 compared to its industry's price-to-book ratio of 1.73. Over the past year, its P/B ratio has been as high as 1.49, as low as 0.83, with a median of 1.13.

Value investors will likely look at more than just these metrics, but the above data helps show that Grifols and USANA Health Sciences are likely undervalued currently. And when considering the strength of its earnings outlook, GRFS and USNA sticks out as one of the market's strongest value stocks.


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