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Should Value Investors Buy Healthcare Services Group (HCSG) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Healthcare Services Group (HCSG - Free Report) is a stock many investors are watching right now. HCSG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 17.15, while its industry has an average P/E of 23.95. HCSG's Forward P/E has been as high as 19.66 and as low as 11.54, with a median of 14.77, all within the past year.
Another valuation metric that we should highlight is HCSG's P/B ratio of 2.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HCSG's current P/B looks attractive when compared to its industry's average P/B of 4.56. Over the past 12 months, HCSG's P/B has been as high as 2.51 and as low as 1.33, with a median of 1.77.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HCSG has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.98.
These are only a few of the key metrics included in Healthcare Services Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HCSG looks like an impressive value stock at the moment.
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Should Value Investors Buy Healthcare Services Group (HCSG) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Healthcare Services Group (HCSG - Free Report) is a stock many investors are watching right now. HCSG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 17.15, while its industry has an average P/E of 23.95. HCSG's Forward P/E has been as high as 19.66 and as low as 11.54, with a median of 14.77, all within the past year.
Another valuation metric that we should highlight is HCSG's P/B ratio of 2.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. HCSG's current P/B looks attractive when compared to its industry's average P/B of 4.56. Over the past 12 months, HCSG's P/B has been as high as 2.51 and as low as 1.33, with a median of 1.77.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HCSG has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.98.
These are only a few of the key metrics included in Healthcare Services Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HCSG looks like an impressive value stock at the moment.