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Is QuidelOrtho (QDEL) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is QuidelOrtho (QDEL - Free Report) . QDEL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.17. This compares to its industry's average Forward P/E of 21.06. Over the past 52 weeks, QDEL's Forward P/E has been as high as 26.31 and as low as 7.11, with a median of 9.98.

Finally, investors will want to recognize that QDEL has a P/CF ratio of 6.01. 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 8.08. QDEL's P/CF has been as high as 7.88 and as low as 3.36, with a median of 4.95, all within the past year.

These are only a few of the key metrics included in QuidelOrtho's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, QDEL looks like an impressive value stock at the moment.


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