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Should Value Investors Buy Encompass Health (EHC) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Encompass Health (EHC - Free Report) . EHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.84, which compares to its industry's average of 20.76. Over the last 12 months, EHC's Forward P/E has been as high as 20.79 and as low as 16.27, with a median of 18.81.
We also note that EHC holds a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EHC's industry has an average PEG of 1.74 right now. Over the last 12 months, EHC's PEG has been as high as 1.77 and as low as 1.20, with a median of 1.42.
We should also highlight that EHC has a P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.71. Over the past 12 months, EHC's P/B has been as high as 3.67 and as low as 2.83, with a median of 3.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Encompass Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EHC feels like a great value stock at the moment.
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Should Value Investors Buy Encompass Health (EHC) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Encompass Health (EHC - Free Report) . EHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.84, which compares to its industry's average of 20.76. Over the last 12 months, EHC's Forward P/E has been as high as 20.79 and as low as 16.27, with a median of 18.81.
We also note that EHC holds a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EHC's industry has an average PEG of 1.74 right now. Over the last 12 months, EHC's PEG has been as high as 1.77 and as low as 1.20, with a median of 1.42.
We should also highlight that EHC has a P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.71. Over the past 12 months, EHC's P/B has been as high as 3.67 and as low as 2.83, with a median of 3.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Encompass Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EHC feels like a great value stock at the moment.