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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 CVS Health (CVS - Free Report) . CVS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.87. This compares to its industry's average Forward P/E of 11.27. Over the last 12 months, CVS's Forward P/E has been as high as 13.06 and as low as 8.89, with a median of 10.56.
Investors should also note that CVS holds a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry currently sports an average PEG of 1.08. Over the past 52 weeks, CVS's PEG has been as high as 1.41 and as low as 0.84, with a median of 1.08.
We should also highlight that CVS has a P/B ratio of 2.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CVS's current P/B looks attractive when compared to its industry's average P/B of 2.32. Over the past year, CVS's P/B has been as high as 2.43 and as low as 1.60, with a median of 1.96.
Finally, investors should note that CVS has a P/CF ratio of 8.52. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.67. Over the past 52 weeks, CVS's P/CF has been as high as 10.77 and as low as 6.61, with a median of 7.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CVS Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVS feels like a great value stock at the moment.
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Is CVS Health (CVS) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 CVS Health (CVS - Free Report) . CVS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.87. This compares to its industry's average Forward P/E of 11.27. Over the last 12 months, CVS's Forward P/E has been as high as 13.06 and as low as 8.89, with a median of 10.56.
Investors should also note that CVS holds a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry currently sports an average PEG of 1.08. Over the past 52 weeks, CVS's PEG has been as high as 1.41 and as low as 0.84, with a median of 1.08.
We should also highlight that CVS has a P/B ratio of 2.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CVS's current P/B looks attractive when compared to its industry's average P/B of 2.32. Over the past year, CVS's P/B has been as high as 2.43 and as low as 1.60, with a median of 1.96.
Finally, investors should note that CVS has a P/CF ratio of 8.52. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.67. Over the past 52 weeks, CVS's P/CF has been as high as 10.77 and as low as 6.61, with a median of 7.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CVS Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVS feels like a great value stock at the moment.