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Should Value Investors Buy FRESENIUS SECO (FSNUY) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is FRESENIUS SECO (FSNUY - Free Report) . FSNUY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.56. This compares to its industry's average Forward P/E of 21. Over the last 12 months, FSNUY's Forward P/E has been as high as 14.84 and as low as 6.92, with a median of 13.04.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSNUY has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.31.

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


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