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Are Investors Undervaluing The Pennant Group (PNTG) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company to watch right now is The Pennant Group (PNTG - Free Report) . PNTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.72. This compares to its industry's average Forward P/E of 25.79. Over the last 12 months, PNTG's Forward P/E has been as high as 43.83 and as low as 12.06, with a median of 21.12.
Investors should also note that PNTG holds a PEG ratio of 1.06. 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. PNTG's PEG compares to its industry's average PEG of 2.37. PNTG's PEG has been as high as 1.69 and as low as 0.93, with a median of 1.21, all within the past year.
Another valuation metric that we should highlight is PNTG's P/B ratio of 2.44. The P/B ratio is used to compare a stock's market value with 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 2.90. PNTG's P/B has been as high as 5.92 and as low as 2.23, with a median of 3.93, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PNTG has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that The Pennant Group is likely undervalued currently. And when considering the strength of its earnings outlook, PNTG sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing The Pennant Group (PNTG) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company to watch right now is The Pennant Group (PNTG - Free Report) . PNTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.72. This compares to its industry's average Forward P/E of 25.79. Over the last 12 months, PNTG's Forward P/E has been as high as 43.83 and as low as 12.06, with a median of 21.12.
Investors should also note that PNTG holds a PEG ratio of 1.06. 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. PNTG's PEG compares to its industry's average PEG of 2.37. PNTG's PEG has been as high as 1.69 and as low as 0.93, with a median of 1.21, all within the past year.
Another valuation metric that we should highlight is PNTG's P/B ratio of 2.44. The P/B ratio is used to compare a stock's market value with 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 2.90. PNTG's P/B has been as high as 5.92 and as low as 2.23, with a median of 3.93, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PNTG has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that The Pennant Group is likely undervalued currently. And when considering the strength of its earnings outlook, PNTG sticks out at as one of the market's strongest value stocks.