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Are Investors Undervaluing Option Care Health (OPCH) Right Now?
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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.
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 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.
One company value investors might notice is Option Care Health (OPCH - Free Report) . OPCH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.09 right now. For comparison, its industry sports an average P/E of 19.73. Over the past year, OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54.
We also note that OPCH holds a PEG ratio of 1.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OPCH's industry currently sports an average PEG of 2.08. Over the past 52 weeks, OPCH's PEG has been as high as 2.97 and as low as 1.37, with a median of 1.75.
Another valuation metric that we should highlight is OPCH's P/B ratio of 3.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OPCH's current P/B looks attractive when compared to its industry's average P/B of 3.99. Over the past year, OPCH's P/B has been as high as 4.27 and as low as 2.59, with a median of 3.66.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPCH has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.6.
Finally, we should also recognize that OPCH has a P/CF ratio of 15.67. 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 22.20. Over the past year, OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Option Care Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPCH feels like a great value stock at the moment.
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Are Investors Undervaluing Option Care Health (OPCH) Right Now?
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.
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 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.
One company value investors might notice is Option Care Health (OPCH - Free Report) . OPCH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.09 right now. For comparison, its industry sports an average P/E of 19.73. Over the past year, OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54.
We also note that OPCH holds a PEG ratio of 1.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OPCH's industry currently sports an average PEG of 2.08. Over the past 52 weeks, OPCH's PEG has been as high as 2.97 and as low as 1.37, with a median of 1.75.
Another valuation metric that we should highlight is OPCH's P/B ratio of 3.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OPCH's current P/B looks attractive when compared to its industry's average P/B of 3.99. Over the past year, OPCH's P/B has been as high as 4.27 and as low as 2.59, with a median of 3.66.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OPCH has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.6.
Finally, we should also recognize that OPCH has a P/CF ratio of 15.67. 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 22.20. Over the past year, OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Option Care Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPCH feels like a great value stock at the moment.