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Should Value Investors Buy LivaNova (LIVN) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is LivaNova (LIVN - Free Report) . LIVN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.89, while its industry has an average P/E of 26.60. Over the past 52 weeks, LIVN's Forward P/E has been as high as 15.18 and as low as 9.05, with a median of 12.91.

Another notable valuation metric for LIVN is its P/B ratio of 2.67. 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 attractive against its industry's average P/B of 3.57. Over the past year, LIVN's P/B has been as high as 2.86 and as low as 1.52, with a median of 2.14.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LIVN has a P/S ratio of 2.18. This compares to its industry's average P/S of 2.75.

These figures are just a handful of the metrics value investors tend to look at, but they help show that LivaNova is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LIVN feels like a great value stock at the moment.


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