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Is DFB Healthcare Acquisitions Corp. (AHCO) Stock Undervalued Right Now?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

DFB Healthcare Acquisitions Corp. (AHCO - Free Report) is a stock many investors are watching right now. AHCO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 23.58, which compares to its industry's average of 27.40. AHCO's Forward P/E has been as high as 109.80 and as low as 15.87, with a median of 24.33, all within the past year.

We also note that AHCO holds a PEG ratio of 1.27. 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. AHCO's PEG compares to its industry's average PEG of 2.54. AHCO's PEG has been as high as 4.39 and as low as 0.92, with a median of 1.07, all within the past year.

Finally, we should also recognize that AHCO has a P/CF ratio of 10.38. 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 10.79.

Value investors will likely look at more than just these metrics, but the above data helps show that DFB Healthcare Acquisitions Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, AHCO sticks out at as one of the market's strongest value stocks.


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