Back to top

Image: Bigstock

Should Value Investors Buy Edgewell Personal Care (EPC) Stock?

Read MoreHide Full Article

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Edgewell Personal Care (EPC - Free Report) is a stock many investors are watching right now. EPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.64 right now. For comparison, its industry sports an average P/E of 18.05. Over the past year, EPC's Forward P/E has been as high as 14.66 and as low as 11.51, with a median of 12.85.

Finally, investors will want to recognize that EPC has a P/CF ratio of 9.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.34. Over the past 52 weeks, EPC's P/CF has been as high as 10.14 and as low as 8.27, with a median of 9.25.

These are only a few of the key metrics included in Edgewell Personal Care'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, EPC looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Edgewell Personal Care Company (EPC) - free report >>

Published in