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Should Value Investors Buy VAREX IMAGING (VREX) 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.
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.
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.
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 an A grade for Value. The stock is trading with P/E ratio of 12.78 right now. For comparison, its industry sports an average P/E of 18.76. 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.
Another valuation metric that we should highlight is VREX's P/B ratio of 1.08. 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 3.02. Within the past 52 weeks, 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 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. VREX has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.45.
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, 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.
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.
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.
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 an A grade for Value. The stock is trading with P/E ratio of 12.78 right now. For comparison, its industry sports an average P/E of 18.76. 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.
Another valuation metric that we should highlight is VREX's P/B ratio of 1.08. 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 3.02. Within the past 52 weeks, 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 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. VREX has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.45.
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.