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Should Value Investors Buy Encompass Health (EHC) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
EHC is also sporting a PEG ratio of 2.04. 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. EHC's PEG compares to its industry's average PEG of 2.09. Over the past 52 weeks, EHC's PEG has been as high as 2.61 and as low as 1.08, with a median of 2.06.
Finally, investors will want to recognize that EHC has a P/CF ratio of 14.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EHC's current P/CF looks attractive when compared to its industry's average P/CF of 22.34. Over the past year, EHC's P/CF has been as high as 15.35 and as low as 12.07, with a median of 13.73.
These are just a handful of the figures considered in Encompass Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EHC is an impressive value stock right now.
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Should Value Investors Buy Encompass Health (EHC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
EHC is also sporting a PEG ratio of 2.04. 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. EHC's PEG compares to its industry's average PEG of 2.09. Over the past 52 weeks, EHC's PEG has been as high as 2.61 and as low as 1.08, with a median of 2.06.
Finally, investors will want to recognize that EHC has a P/CF ratio of 14.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EHC's current P/CF looks attractive when compared to its industry's average P/CF of 22.34. Over the past year, EHC's P/CF has been as high as 15.35 and as low as 12.07, with a median of 13.73.
These are just a handful of the figures considered in Encompass Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EHC is an impressive value stock right now.