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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Magellan Health . MGLN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We also note that MGLN holds a PEG ratio of 0.69. 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. MGLN's industry currently sports an average PEG of 1.09. MGLN's PEG has been as high as 1.67 and as low as 0.62, with a median of 1.23, all within the past year.
Another valuation metric that we should highlight is MGLN's P/B ratio of 1.36. The P/B ratio pits a stock's market value against 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 3.31. Within the past 52 weeks, MGLN's P/B has been as high as 1.85 and as low as 0.97, with a median of 1.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGLN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.49.
Finally, investors should note that MGLN has a P/CF ratio of 12.09. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.46. Over the past 52 weeks, MGLN's P/CF has been as high as 12.27 and as low as 5.57, with a median of 9.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Magellan Health is likely undervalued currently. And when considering the strength of its earnings outlook, MGLN sticks out at as one of the market's strongest value stocks.
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Is Magellan Health (MGLN) a Great Value Stock Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Magellan Health . MGLN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We also note that MGLN holds a PEG ratio of 0.69. 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. MGLN's industry currently sports an average PEG of 1.09. MGLN's PEG has been as high as 1.67 and as low as 0.62, with a median of 1.23, all within the past year.
Another valuation metric that we should highlight is MGLN's P/B ratio of 1.36. The P/B ratio pits a stock's market value against 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 3.31. Within the past 52 weeks, MGLN's P/B has been as high as 1.85 and as low as 0.97, with a median of 1.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGLN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.49.
Finally, investors should note that MGLN has a P/CF ratio of 12.09. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.46. Over the past 52 weeks, MGLN's P/CF has been as high as 12.27 and as low as 5.57, with a median of 9.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Magellan Health is likely undervalued currently. And when considering the strength of its earnings outlook, MGLN sticks out at as one of the market's strongest value stocks.