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Are These Medical Stocks a Great Value Stocks Right Now?
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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.
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 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.
Phibro Animal Health (PAHC - Free Report) is a stock many investors are watching right now. PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.89 right now. For comparison, its industry sports an average P/E of 24.11. Over the last 12 months, PAHC's Forward P/E has been as high as 23.75 and as low as 13.97, with a median of 18.24.
We also note that PAHC holds a PEG ratio of 1.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAHC's industry currently sports an average PEG of 1.99. Within the past year, PAHC's PEG has been as high as 2.24 and as low as 1.61, with a median of 1.90.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 9.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.21. Over the past year, PAHC's P/CF has been as high as 16.03 and as low as 8.70, with a median of 11.30.
Another great Medical - Products stock you could consider is Perrigo (PRGO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Perrigo is currently trading with a Forward P/E ratio of 14.10 while its PEG ratio sits at 0.86. Both of the company's metrics compare favorably to its industry's average P/E of 24.11 and average PEG ratio of 1.99.
PRGO's price-to-earnings ratio has been as high as 19.84 and as low as 9.48, with a median of 15.64, while its PEG ratio has been as high as 10.64 and as low as 0.78, with a median of 9.69, all within the past year.
Additionally, Perrigo has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 2.80. For PRGO, this valuation metric has been as high as 1.25, as low as 0.92, with a median of 1.04 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Phibro Animal Health and Perrigo are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAHC and PRGO feels like a great value stock at the moment.
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Are These Medical Stocks a Great Value Stocks Right Now?
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.
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 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.
Phibro Animal Health (PAHC - Free Report) is a stock many investors are watching right now. PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.89 right now. For comparison, its industry sports an average P/E of 24.11. Over the last 12 months, PAHC's Forward P/E has been as high as 23.75 and as low as 13.97, with a median of 18.24.
We also note that PAHC holds a PEG ratio of 1.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAHC's industry currently sports an average PEG of 1.99. Within the past year, PAHC's PEG has been as high as 2.24 and as low as 1.61, with a median of 1.90.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 9.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.21. Over the past year, PAHC's P/CF has been as high as 16.03 and as low as 8.70, with a median of 11.30.
Another great Medical - Products stock you could consider is Perrigo (PRGO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Perrigo is currently trading with a Forward P/E ratio of 14.10 while its PEG ratio sits at 0.86. Both of the company's metrics compare favorably to its industry's average P/E of 24.11 and average PEG ratio of 1.99.
PRGO's price-to-earnings ratio has been as high as 19.84 and as low as 9.48, with a median of 15.64, while its PEG ratio has been as high as 10.64 and as low as 0.78, with a median of 9.69, all within the past year.
Additionally, Perrigo has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 2.80. For PRGO, this valuation metric has been as high as 1.25, as low as 0.92, with a median of 1.04 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Phibro Animal Health and Perrigo are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAHC and PRGO feels like a great value stock at the moment.