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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.
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 Humana (HUM - Free Report) . HUM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for HUM is its P/B ratio of 3.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.07. HUM's P/B has been as high as 4.60 and as low as 2.90, with a median of 3.63, over the past year.
Finally, our model also underscores that HUM has a P/CF ratio of 11.95. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.12. Over the past year, HUM's P/CF has been as high as 25.05 and as low as 11.55, with a median of 17.06.
These are only a few of the key metrics included in Humana'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, HUM looks like an impressive value stock at the moment.
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Is Humana (HUM) a Great Value Stock 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.
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 Humana (HUM - Free Report) . HUM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for HUM is its P/B ratio of 3.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.07. HUM's P/B has been as high as 4.60 and as low as 2.90, with a median of 3.63, over the past year.
Finally, our model also underscores that HUM has a P/CF ratio of 11.95. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.12. Over the past year, HUM's P/CF has been as high as 25.05 and as low as 11.55, with a median of 17.06.
These are only a few of the key metrics included in Humana'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, HUM looks like an impressive value stock at the moment.