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Are Investors Undervaluing DFB Healthcare Acquisitions Corp. (AHCO) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

DFB Healthcare Acquisitions Corp. (AHCO - Free Report) is a stock many investors are watching right now. AHCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 26.14. This compares to its industry's average Forward P/E of 27.57. Over the past 52 weeks, AHCO's Forward P/E has been as high as 109.80 and as low as 15.87, with a median of 25.99.

Investors will also notice that AHCO has a PEG ratio of 1.27. 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. AHCO's industry has an average PEG of 2.56 right now. Within the past year, AHCO's PEG has been as high as 4.39 and as low as 0.92, with a median of 1.07.

Finally, investors will want to recognize that AHCO has a P/CF ratio of 11.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AHCO's current P/CF looks attractive when compared to its industry's average P/CF of 20.54. Over the past 52 weeks, AHCO's P/CF has been as high as 13.43 and as low as 6.74, with a median of 10.62.

These are just a handful of the figures considered in DFB Healthcare Acquisitions Corp.'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 AHCO is an impressive value stock right now.


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