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Are Investors Undervaluing Zimmer Biomet (ZBH) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Zimmer Biomet (ZBH - Free Report) . ZBH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.98 right now. For comparison, its industry sports an average P/E of 20.91. Over the last 12 months, ZBH's Forward P/E has been as high as 13.52 and as low as 10.73, with a median of 12.36.
Finally, we should also recognize that ZBH has a P/CF ratio of 10.65. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.98. Over the past 52 weeks, ZBH's P/CF has been as high as 11.88 and as low as 9.36, with a median of 10.65.
These are only a few of the key metrics included in Zimmer Biomet'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, ZBH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Zimmer Biomet (ZBH) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Zimmer Biomet (ZBH - Free Report) . ZBH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.98 right now. For comparison, its industry sports an average P/E of 20.91. Over the last 12 months, ZBH's Forward P/E has been as high as 13.52 and as low as 10.73, with a median of 12.36.
Finally, we should also recognize that ZBH has a P/CF ratio of 10.65. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.98. Over the past 52 weeks, ZBH's P/CF has been as high as 11.88 and as low as 9.36, with a median of 10.65.
These are only a few of the key metrics included in Zimmer Biomet'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, ZBH looks like an impressive value stock at the moment.