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Should Value Investors Buy Option Care Health (OPCH) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.09, which compares to its industry's average of 19.59. OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54, all within the past year.
Investors should also note that OPCH holds a PEG ratio of 1.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OPCH's industry has an average PEG of 2.07 right now. Within the past year, 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. This stock's P/B looks solid versus its industry's average P/B of 3.89. Over the past 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by 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 0.82. This compares to its industry's average P/S of 1.53.
Finally, we should also recognize that OPCH has a P/CF ratio of 15.67. 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 21.37. OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42, all within the past year.
These are only a few of the key metrics included in Option Care Health'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, OPCH looks like an impressive value stock at the moment.
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Should Value Investors Buy Option Care Health (OPCH) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.09, which compares to its industry's average of 19.59. OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54, all within the past year.
Investors should also note that OPCH holds a PEG ratio of 1.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OPCH's industry has an average PEG of 2.07 right now. Within the past year, 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. This stock's P/B looks solid versus its industry's average P/B of 3.89. Over the past 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by 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 0.82. This compares to its industry's average P/S of 1.53.
Finally, we should also recognize that OPCH has a P/CF ratio of 15.67. 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 21.37. OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42, all within the past year.
These are only a few of the key metrics included in Option Care Health'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, OPCH looks like an impressive value stock at the moment.