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Are Investors Undervaluing PetIQ (PETQ) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
PetIQ (PETQ - Free Report) is a stock many investors are watching right now. PETQ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.65. This compares to its industry's average Forward P/E of 20.47. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 11.85, with a median of 16.04.
PETQ is also sporting a PEG ratio of 1.90. 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. PETQ's industry has an average PEG of 2.05 right now. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 1.83, with a median of 2.17.
Another valuation metric that we should highlight is PETQ's P/B ratio of 2.57. 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 stock's P/B looks solid versus its industry's average P/B of 6.78. Within the past 52 weeks, PETQ's P/B has been as high as 2.75 and as low as 1.73, with a median of 2.31.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PETQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.56.
Finally, we should also recognize that PETQ has a P/CF ratio of 12.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 33.20. PETQ's P/CF has been as high as 13.39 and as low as 8.36, with a median of 9.97, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that PetIQ is likely undervalued currently. And when considering the strength of its earnings outlook, PETQ sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing PetIQ (PETQ) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
PetIQ (PETQ - Free Report) is a stock many investors are watching right now. PETQ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.65. This compares to its industry's average Forward P/E of 20.47. Over the last 12 months, PETQ's Forward P/E has been as high as 22.18 and as low as 11.85, with a median of 16.04.
PETQ is also sporting a PEG ratio of 1.90. 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. PETQ's industry has an average PEG of 2.05 right now. Over the past 52 weeks, PETQ's PEG has been as high as 2.77 and as low as 1.83, with a median of 2.17.
Another valuation metric that we should highlight is PETQ's P/B ratio of 2.57. 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 stock's P/B looks solid versus its industry's average P/B of 6.78. Within the past 52 weeks, PETQ's P/B has been as high as 2.75 and as low as 1.73, with a median of 2.31.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PETQ has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.56.
Finally, we should also recognize that PETQ has a P/CF ratio of 12.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 33.20. PETQ's P/CF has been as high as 13.39 and as low as 8.36, with a median of 9.97, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that PetIQ is likely undervalued currently. And when considering the strength of its earnings outlook, PETQ sticks out at as one of the market's strongest value stocks.