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Is ICU Medical (ICUI) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 ICU Medical (ICUI - Free Report) . ICUI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is ICUI's P/B ratio of 1.86. 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. ICUI's current P/B looks attractive when compared to its industry's average P/B of 4.92. Within the past 52 weeks, ICUI's P/B has been as high as 1.89 and as low as 0.93, with a median of 1.21.

Finally, our model also underscores that ICUI has a P/CF ratio of 23.32. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 35.87. Over the past 52 weeks, ICUI's P/CF has been as high as 23.80 and as low as 9.36, with a median of 13.46.

Value investors will likely look at more than just these metrics, but the above data helps show that ICU Medical is likely undervalued currently. And when considering the strength of its earnings outlook, ICUI sticks out at as one of the market's strongest value stocks.


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