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Should Value Investors Buy Avanos Medical (AVNS) 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 Avanos Medical (AVNS - Free Report) . AVNS 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 14.56, which compares to its industry's average of 32.52. Over the last 12 months, AVNS's Forward P/E has been as high as 21.37 and as low as 11.70, with a median of 13.40.
Investors will also notice that AVNS has a PEG ratio of 0.99. 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. AVNS's PEG compares to its industry's average PEG of 2.49. Over the last 12 months, AVNS's PEG has been as high as 1.72 and as low as 0.97, with a median of 1.10.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVNS has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.88.
These are only a few of the key metrics included in Avanos Medical'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, AVNS looks like an impressive value stock at the moment.
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Should Value Investors Buy Avanos Medical (AVNS) 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 Avanos Medical (AVNS - Free Report) . AVNS 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 14.56, which compares to its industry's average of 32.52. Over the last 12 months, AVNS's Forward P/E has been as high as 21.37 and as low as 11.70, with a median of 13.40.
Investors will also notice that AVNS has a PEG ratio of 0.99. 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. AVNS's PEG compares to its industry's average PEG of 2.49. Over the last 12 months, AVNS's PEG has been as high as 1.72 and as low as 0.97, with a median of 1.10.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVNS has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.88.
These are only a few of the key metrics included in Avanos Medical'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, AVNS looks like an impressive value stock at the moment.