Back to top

Image: Bigstock

Is EUROFINS SCIENT (ERFSF) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 EUROFINS SCIENT . ERFSF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 17.96 right now. For comparison, its industry sports an average P/E of 27.95. ERFSF's Forward P/E has been as high as 1,734.50 and as low as 17.96, with a median of 1,509.71, all within the past year.

We also note that ERFSF holds a PEG ratio of 1.10. 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. ERFSF's PEG compares to its industry's average PEG of 1.36. Within the past year, ERFSF's PEG has been as high as 106.41 and as low as 1.10, with a median of 92.62.

These are just a handful of the figures considered in EUROFINS SCIENT's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ERFSF is an impressive value stock right now.

Published in