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Are Investors Undervaluing Henry Schein (HSIC) Right Now?

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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 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.

One stock to keep an eye on is Henry Schein (HSIC - Free Report) . HSIC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 17.36. Over the past 52 weeks, HSIC's Forward P/E has been as high as 15.82 and as low as 12.57, with a median of 13.90.

HSIC is also sporting a PEG ratio of 2.11. 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. HSIC's industry currently sports an average PEG of 2.21. Within the past year, HSIC's PEG has been as high as 2.31 and as low as 1.77, with a median of 2.08.

Another notable valuation metric for HSIC is its P/B ratio of 2.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. HSIC's current P/B looks attractive when compared to its industry's average P/B of 5.63. HSIC's P/B has been as high as 2.53 and as low as 1.92, with a median of 2.16, over the past year.

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. HSIC has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.71.

Finally, our model also underscores that HSIC has a P/CF ratio of 11.89. 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. HSIC's current P/CF looks attractive when compared to its industry's average P/CF of 19.19. Within the past 12 months, HSIC's P/CF has been as high as 15.66 and as low as 10.92, with a median of 12.77.

These are just a handful of the figures considered in Henry Schein's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HSIC is an impressive value stock right now.

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