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Are Investors Undervaluing Owens & Minor (OMI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Owens & Minor (OMI - Free Report) . OMI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.42 right now. For comparison, its industry sports an average P/E of 27.63. Over the last 12 months, OMI's Forward P/E has been as high as 24.77 and as low as 6.91, with a median of 10.08.
Investors should also recognize that OMI has a P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to 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 2.85. Over the past 12 months, OMI's P/B has been as high as 2.76 and as low as 0.56, with a median of 0.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens & Minor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMI feels like a great value stock at the moment.
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Are Investors Undervaluing Owens & Minor (OMI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Owens & Minor (OMI - Free Report) . OMI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.42 right now. For comparison, its industry sports an average P/E of 27.63. Over the last 12 months, OMI's Forward P/E has been as high as 24.77 and as low as 6.91, with a median of 10.08.
Investors should also recognize that OMI has a P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to 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 2.85. Over the past 12 months, OMI's P/B has been as high as 2.76 and as low as 0.56, with a median of 0.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens & Minor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMI feels like a great value stock at the moment.