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Should Value Investors Buy Koninklijke Philips (PHG) 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.
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 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.
One company value investors might notice is Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.12, while its industry has an average P/E of 21.22. Over the past year, PHG's Forward P/E has been as high as 18.69 and as low as 13.05, with a median of 15.63.
We also note that PHG holds a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHG's PEG compares to its industry's average PEG of 2.00. Over the last 12 months, PHG's PEG has been as high as 0.97 and as low as 0.45, with a median of 0.70.
We should also highlight that PHG has a P/B ratio of 2.29. 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 5.10. PHG's P/B has been as high as 2.40 and as low as 1.65, with a median of 1.93, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PHG has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.58.
These are just a handful of the figures considered in Koninklijke Philips'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 PHG is an impressive value stock right now.
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Should Value Investors Buy Koninklijke Philips (PHG) 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.
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 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.
One company value investors might notice is Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.12, while its industry has an average P/E of 21.22. Over the past year, PHG's Forward P/E has been as high as 18.69 and as low as 13.05, with a median of 15.63.
We also note that PHG holds a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHG's PEG compares to its industry's average PEG of 2.00. Over the last 12 months, PHG's PEG has been as high as 0.97 and as low as 0.45, with a median of 0.70.
We should also highlight that PHG has a P/B ratio of 2.29. 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 5.10. PHG's P/B has been as high as 2.40 and as low as 1.65, with a median of 1.93, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PHG has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.58.
These are just a handful of the figures considered in Koninklijke Philips'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 PHG is an impressive value stock right now.