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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Centene (CNC - Free Report) is a stock many investors are watching right now. CNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.73, while its industry has an average P/E of 16.63. Over the past 52 weeks, CNC's Forward P/E has been as high as 14.34 and as low as 9.31, with a median of 10.44.
Investors should also note that CNC holds a PEG ratio of 0.84. 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. CNC's PEG compares to its industry's average PEG of 1.24. CNC's PEG has been as high as 1.07 and as low as 0.71, with a median of 0.89, all within the past year.
Another valuation metric that we should highlight is CNC's P/B ratio of 1.50. 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 3.82. Over the past year, CNC's P/B has been as high as 1.94 and as low as 1.29, with a median of 1.48.
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. CNC has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.59.
Finally, we should also recognize that CNC has a P/CF ratio of 10.19. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.29. CNC's P/CF has been as high as 16.67 and as low as 8.17, with a median of 12.38, all within the past year.
If you're looking for another solid Medical - HMOs value stock, take a look at Molina Healthcare (MOH - Free Report) . MOH is a # 2 (Buy) stock with a Value score of A.
Molina Healthcare is currently trading with a Forward P/E ratio of 15.09 while its PEG ratio sits at 1.04. Both of the company's metrics compare favorably to its industry's average P/E of 16.63 and average PEG ratio of 1.24.
Over the last 12 months, MOH's P/E has been as high as 18.55, as low as 12.61, with a median of 14.29, and its PEG ratio has been as high as 1.11, as low as 0.65, with a median of 0.97.
Furthermore, Molina Healthcare holds a P/B ratio of 5.30 and its industry's price-to-book ratio is 3.82. MOH's P/B has been as high as 6.78, as low as 4.66, with a median of 5.22 over the past 12 months.
These are only a few of the key metrics included in Centene and Molina Healthcare strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNC and MOH look like an impressive value stock at the moment.
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Is Centene (CNC) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Centene (CNC - Free Report) is a stock many investors are watching right now. CNC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.73, while its industry has an average P/E of 16.63. Over the past 52 weeks, CNC's Forward P/E has been as high as 14.34 and as low as 9.31, with a median of 10.44.
Investors should also note that CNC holds a PEG ratio of 0.84. 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. CNC's PEG compares to its industry's average PEG of 1.24. CNC's PEG has been as high as 1.07 and as low as 0.71, with a median of 0.89, all within the past year.
Another valuation metric that we should highlight is CNC's P/B ratio of 1.50. 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 3.82. Over the past year, CNC's P/B has been as high as 1.94 and as low as 1.29, with a median of 1.48.
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. CNC has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.59.
Finally, we should also recognize that CNC has a P/CF ratio of 10.19. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.29. CNC's P/CF has been as high as 16.67 and as low as 8.17, with a median of 12.38, all within the past year.
If you're looking for another solid Medical - HMOs value stock, take a look at Molina Healthcare (MOH - Free Report) . MOH is a # 2 (Buy) stock with a Value score of A.
Molina Healthcare is currently trading with a Forward P/E ratio of 15.09 while its PEG ratio sits at 1.04. Both of the company's metrics compare favorably to its industry's average P/E of 16.63 and average PEG ratio of 1.24.
Over the last 12 months, MOH's P/E has been as high as 18.55, as low as 12.61, with a median of 14.29, and its PEG ratio has been as high as 1.11, as low as 0.65, with a median of 0.97.
Furthermore, Molina Healthcare holds a P/B ratio of 5.30 and its industry's price-to-book ratio is 3.82. MOH's P/B has been as high as 6.78, as low as 4.66, with a median of 5.22 over the past 12 months.
These are only a few of the key metrics included in Centene and Molina Healthcare strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CNC and MOH look like an impressive value stock at the moment.