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Should Value Investors Buy Quest Diagnostics (DGX) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on 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 holds a P/E ratio of 16.16, while its industry has an average P/E of 20.47. Over the past year, DGX's Forward P/E has been as high as 16.25 and as low as 13.44, with a median of 14.97.
We should also highlight that DGX has a P/B ratio of 2.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.68. Within the past 52 weeks, DGX's P/B has been as high as 2.52 and as low as 2.10, with a median of 2.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quest Diagnostics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGX feels like a great value stock at the moment.
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Should Value Investors Buy Quest Diagnostics (DGX) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on 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 holds a P/E ratio of 16.16, while its industry has an average P/E of 20.47. Over the past year, DGX's Forward P/E has been as high as 16.25 and as low as 13.44, with a median of 14.97.
We should also highlight that DGX has a P/B ratio of 2.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.68. Within the past 52 weeks, DGX's P/B has been as high as 2.52 and as low as 2.10, with a median of 2.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quest Diagnostics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DGX feels like a great value stock at the moment.