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Are Investors Undervaluing Syneos Health (SYNH) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Syneos Health (SYNH - Free Report) . SYNH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.45 right now. For comparison, its industry sports an average P/E of 40.38. Over the past year, SYNH's Forward P/E has been as high as 17.84 and as low as 11.84, with a median of 15.07.

Investors should also note that SYNH holds a PEG ratio of 1.38. 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. SYNH's PEG compares to its industry's average PEG of 3.14. SYNH's PEG has been as high as 1.47 and as low as 0.72, with a median of 1.16, all within the past year.

Investors should also recognize that SYNH has a P/B ratio of 1.83. 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. This stock's P/B looks attractive against its industry's average P/B of 2.62. Over the past year, SYNH's P/B has been as high as 2.01 and as low as 1.33, with a median of 1.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Syneos Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SYNH feels like a great value stock at the moment.


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