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Are Investors Undervaluing VAREX IMAGING (VREX) Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 VAREX IMAGING (VREX - Free Report) . VREX is currently sporting a Zacks Rank #2 (Buy) and an A 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 20.05. VREX's Forward P/E has been as high as 26.48 and as low as 11.49, with a median of 18.40, all within the past year.
Another notable valuation metric for VREX is its 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 2.89. VREX's P/B has been as high as 1.24 and as low as 0.50, with a median of 0.94, over the past year.
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. VREX has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.52.
These are only a few of the key metrics included in VAREX IMAGING'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, VREX looks like an impressive value stock at the moment.
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Are Investors Undervaluing VAREX IMAGING (VREX) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 VAREX IMAGING (VREX - Free Report) . VREX is currently sporting a Zacks Rank #2 (Buy) and an A 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 20.05. VREX's Forward P/E has been as high as 26.48 and as low as 11.49, with a median of 18.40, all within the past year.
Another notable valuation metric for VREX is its 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 2.89. VREX's P/B has been as high as 1.24 and as low as 0.50, with a median of 0.94, over the past year.
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. VREX has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.52.
These are only a few of the key metrics included in VAREX IMAGING'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, VREX looks like an impressive value stock at the moment.