We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Option Care Health (OPCH) Stock?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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 an A grade for Value. The stock holds a P/E ratio of 15.09, while its industry has an average P/E of 19.00. Over the past year, OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54.
Another notable valuation metric for OPCH is its P/B ratio of 3.38. 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 solid versus its industry's average P/B of 4.74. Over the past year, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OPCH has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.46.
Finally, investors should note that OPCH has a P/CF ratio of 15.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 33.21. Within the past 12 months, OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42.
Value investors will likely look at more than just these metrics, but the above data helps show that Option Care Health is likely undervalued currently. And when considering the strength of its earnings outlook, OPCH sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Option Care Health (OPCH) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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 an A grade for Value. The stock holds a P/E ratio of 15.09, while its industry has an average P/E of 19.00. Over the past year, OPCH's Forward P/E has been as high as 25.75 and as low as 14.74, with a median of 18.54.
Another notable valuation metric for OPCH is its P/B ratio of 3.38. 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 solid versus its industry's average P/B of 4.74. Over the past year, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OPCH has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.46.
Finally, investors should note that OPCH has a P/CF ratio of 15.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 33.21. Within the past 12 months, OPCH's P/CF has been as high as 21.37 and as low as 13.58, with a median of 18.42.
Value investors will likely look at more than just these metrics, but the above data helps show that Option Care Health is likely undervalued currently. And when considering the strength of its earnings outlook, OPCH sticks out as one of the market's strongest value stocks.