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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
AmerisourceBergen is a stock many investors are watching right now. ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.80, which compares to its industry's average of 18.36. ABC's Forward P/E has been as high as 4,387.73 and as low as 10.53, with a median of 11.98, all within the past year.
Investors will also notice that ABC has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABC's industry has an average PEG of 1.91 right now. Over the last 12 months, ABC's PEG has been as high as 549.15 and as low as 0.94, with a median of 1.06.
Finally, our model also underscores that ABC has a P/CF ratio of 13.65. 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. ABC's P/CF compares to its industry's average P/CF of 15.46. ABC's P/CF has been as high as 13.72 and as low as -8.74, with a median of -7.24, all within the past year.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
McKesson is trading at a forward earnings multiple of 12.06 at the moment, with a PEG ratio of 1.02. This compares to its industry's average P/E of 18.36 and average PEG ratio of 1.91.
Over the last 12 months, MCK's P/E has been as high as 12.42, as low as 9.17, with a median of 10.07, and its PEG ratio has been as high as 1.73, as low as 0.96, with a median of 1.32.
McKesson sports a P/B ratio of -52.34 as well; this compares to its industry's price-to-book ratio of 4.26. In the past 52 weeks, MCK's P/B has been as high as 184.34, as low as -717.21, with a median of -347.85.
These are just a handful of the figures considered in AmerisourceBergen and McKesson'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 ABC and MCK is an impressive value stock right now.
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Are These Medical Stocks Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
AmerisourceBergen is a stock many investors are watching right now. ABC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.80, which compares to its industry's average of 18.36. ABC's Forward P/E has been as high as 4,387.73 and as low as 10.53, with a median of 11.98, all within the past year.
Investors will also notice that ABC has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABC's industry has an average PEG of 1.91 right now. Over the last 12 months, ABC's PEG has been as high as 549.15 and as low as 0.94, with a median of 1.06.
Finally, our model also underscores that ABC has a P/CF ratio of 13.65. 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. ABC's P/CF compares to its industry's average P/CF of 15.46. ABC's P/CF has been as high as 13.72 and as low as -8.74, with a median of -7.24, all within the past year.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
McKesson is trading at a forward earnings multiple of 12.06 at the moment, with a PEG ratio of 1.02. This compares to its industry's average P/E of 18.36 and average PEG ratio of 1.91.
Over the last 12 months, MCK's P/E has been as high as 12.42, as low as 9.17, with a median of 10.07, and its PEG ratio has been as high as 1.73, as low as 0.96, with a median of 1.32.
McKesson sports a P/B ratio of -52.34 as well; this compares to its industry's price-to-book ratio of 4.26. In the past 52 weeks, MCK's P/B has been as high as 184.34, as low as -717.21, with a median of -347.85.
These are just a handful of the figures considered in AmerisourceBergen and McKesson'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 ABC and MCK is an impressive value stock right now.