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Should Value Investors Buy Henry Schein (HSIC) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Henry Schein (HSIC - Free Report) is a stock many investors are watching right now. HSIC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 17.20. 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.
We also note that HSIC holds 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 PEG compares to its industry's average PEG of 2.20. Over the past 52 weeks, 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 5.58. Over the past 12 months, HSIC's P/B has been as high as 2.53 and as low as 1.92, with a median of 2.16.
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. HSIC has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.71.
Finally, investors will want to recognize that HSIC has a P/CF ratio of 11.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HSIC's current P/CF looks attractive when compared to its industry's average P/CF of 19.08. Over the past 52 weeks, 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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Should Value Investors Buy Henry Schein (HSIC) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Henry Schein (HSIC - Free Report) is a stock many investors are watching right now. HSIC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 17.20. 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.
We also note that HSIC holds 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 PEG compares to its industry's average PEG of 2.20. Over the past 52 weeks, 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 5.58. Over the past 12 months, HSIC's P/B has been as high as 2.53 and as low as 1.92, with a median of 2.16.
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. HSIC has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.71.
Finally, investors will want to recognize that HSIC has a P/CF ratio of 11.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HSIC's current P/CF looks attractive when compared to its industry's average P/CF of 19.08. Over the past 52 weeks, 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.