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Should Value Investors Buy Option Care Health (OPCH) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Option Care Health (OPCH - Free Report) . OPCH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that OPCH holds a PEG ratio of 1.40. 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. OPCH's industry has an average PEG of 1.65 right now. OPCH's PEG has been as high as 1.84 and as low as 1.07, with a median of 1.33, all within the past year.
We should also highlight that OPCH has a P/B ratio of 3.81. 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 3.97. Over the past 12 months, OPCH's P/B has been as high as 4.32 and as low as 3.25, with a median of 3.93.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OPCH has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.44.
Value investors will likely look at more than just these metrics, but the above data helps show that Option Care Health is likely undervalued currently. And when considering the strength of its earnings outlook, OPCH sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Option Care Health (OPCH) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Option Care Health (OPCH - Free Report) . OPCH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that OPCH holds a PEG ratio of 1.40. 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. OPCH's industry has an average PEG of 1.65 right now. OPCH's PEG has been as high as 1.84 and as low as 1.07, with a median of 1.33, all within the past year.
We should also highlight that OPCH has a P/B ratio of 3.81. 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 3.97. Over the past 12 months, OPCH's P/B has been as high as 4.32 and as low as 3.25, with a median of 3.93.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OPCH has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.44.
Value investors will likely look at more than just these metrics, but the above data helps show that Option Care Health is likely undervalued currently. And when considering the strength of its earnings outlook, OPCH sticks out at as one of the market's strongest value stocks.