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Should Value Investors Buy VAREX IMAGING (VREX) 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 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.
VAREX IMAGING (VREX - Free Report) is a stock many investors are watching right now. VREX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.78. This compares to its industry's average Forward P/E of 20.27. Over the last 12 months, VREX's Forward P/E has been as high as 26.48 and as low as 11.49, with a median of 18.40.
Investors should also recognize that VREX has a P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with 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 2.87. Over the past 12 months, VREX's P/B has been as high as 1.24 and as low as 0.50, with a median of 0.94.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VREX has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.34.
Value investors will likely look at more than just these metrics, but the above data helps show that VAREX IMAGING is likely undervalued currently. And when considering the strength of its earnings outlook, VREX sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy VAREX IMAGING (VREX) 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 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.
VAREX IMAGING (VREX - Free Report) is a stock many investors are watching right now. VREX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.78. This compares to its industry's average Forward P/E of 20.27. Over the last 12 months, VREX's Forward P/E has been as high as 26.48 and as low as 11.49, with a median of 18.40.
Investors should also recognize that VREX has a P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with 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 2.87. Over the past 12 months, VREX's P/B has been as high as 1.24 and as low as 0.50, with a median of 0.94.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VREX has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.34.
Value investors will likely look at more than just these metrics, but the above data helps show that VAREX IMAGING is likely undervalued currently. And when considering the strength of its earnings outlook, VREX sticks out as one of the market's strongest value stocks.