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Should Value Investors Buy Baxter International (BAX) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.44, while its industry has an average P/E of 19.94. Over the past 52 weeks, BAX's Forward P/E has been as high as 15.91 and as low as 10.64, with a median of 13.14.
Investors should also note that BAX holds a PEG ratio of 1.73. 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. BAX's PEG compares to its industry's average PEG of 1.97. Over the past 52 weeks, BAX's PEG has been as high as 4.33 and as low as 1.63, with a median of 2.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.46.
If you're looking for another solid Medical - Products value stock, take a look at Phibro Animal Health (PAHC - Free Report) . PAHC is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Phibro Animal Health are currently trading at a forward earnings multiple of 11.81 and a PEG ratio of 4.41 compared to its industry's P/E and PEG ratios of 19.94 and 1.97, respectively.
Over the last 12 months, PAHC's P/E has been as high as 15.18, as low as 8.01, with a median of 10.56, and its PEG ratio has been as high as 7.83, as low as 2.19, with a median of 4.40.
Phibro Animal Health also has a P/B ratio of 2.53 compared to its industry's price-to-book ratio of 6.77. Over the past year, its P/B ratio has been as high as 2.78, as low as 1.42, with a median of 1.89.
These are only a few of the key metrics included in Baxter International and Phibro Animal Health strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BAX and PAHC look like an impressive value stock at the moment.
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Should Value Investors Buy Baxter International (BAX) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.44, while its industry has an average P/E of 19.94. Over the past 52 weeks, BAX's Forward P/E has been as high as 15.91 and as low as 10.64, with a median of 13.14.
Investors should also note that BAX holds a PEG ratio of 1.73. 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. BAX's PEG compares to its industry's average PEG of 1.97. Over the past 52 weeks, BAX's PEG has been as high as 4.33 and as low as 1.63, with a median of 2.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.46.
If you're looking for another solid Medical - Products value stock, take a look at Phibro Animal Health (PAHC - Free Report) . PAHC is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Phibro Animal Health are currently trading at a forward earnings multiple of 11.81 and a PEG ratio of 4.41 compared to its industry's P/E and PEG ratios of 19.94 and 1.97, respectively.
Over the last 12 months, PAHC's P/E has been as high as 15.18, as low as 8.01, with a median of 10.56, and its PEG ratio has been as high as 7.83, as low as 2.19, with a median of 4.40.
Phibro Animal Health also has a P/B ratio of 2.53 compared to its industry's price-to-book ratio of 6.77. Over the past year, its P/B ratio has been as high as 2.78, as low as 1.42, with a median of 1.89.
These are only a few of the key metrics included in Baxter International and Phibro Animal Health strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BAX and PAHC look like an impressive value stock at the moment.