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Is Bausch Health (BHC) a Great Value Stock Right Now?

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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.

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 Bausch Health (BHC - Free Report) . BHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.78, while its industry has an average P/E of 8.01. Over the past 52 weeks, BHC's Forward P/E has been as high as 8.78 and as low as 4.59, with a median of 6.34.

BHC is also sporting a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BHC's industry currently sports an average PEG of 1.22. Over the last 12 months, BHC's PEG has been as high as 0.62 and as low as 0.23, with a median of 0.33.

These are only a few of the key metrics included in Bausch Health'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, BHC looks like an impressive value stock at the moment.




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