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Are Investors Undervaluing Quest Diagnostics (DGX) 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.
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 company value investors might notice is Quest Diagnostics (DGX - Free Report) . DGX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.65, which compares to its industry's average of 20.83. Over the last 12 months, DGX's Forward P/E has been as high as 16.25 and as low as 13.44, with a median of 14.97.
Another notable valuation metric for DGX is its P/B ratio of 2.48. 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 3.97. DGX's P/B has been as high as 2.59 and as low as 2.10, with a median of 2.35, over the past year.
These are only a few of the key metrics included in Quest Diagnostics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DGX looks like an impressive value stock at the moment.
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Are Investors Undervaluing Quest Diagnostics (DGX) 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.
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 company value investors might notice is Quest Diagnostics (DGX - Free Report) . DGX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.65, which compares to its industry's average of 20.83. Over the last 12 months, DGX's Forward P/E has been as high as 16.25 and as low as 13.44, with a median of 14.97.
Another notable valuation metric for DGX is its P/B ratio of 2.48. 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 3.97. DGX's P/B has been as high as 2.59 and as low as 2.10, with a median of 2.35, over the past year.
These are only a few of the key metrics included in Quest Diagnostics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DGX looks like an impressive value stock at the moment.