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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
PetIQ (PETQ - Free Report) is a stock many investors are watching right now. PETQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 18.39, which compares to its industry's average of 22.02. Over the last 12 months, PETQ's Forward P/E has been as high as 21.79 and as low as 11.85, with a median of 15.42.
Investors should also note that PETQ holds a PEG ratio of 1.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PETQ's industry has an average PEG of 2.17 right now. Over the last 12 months, PETQ's PEG has been as high as 2.72 and as low as 1.83, with a median of 2.05.
Another notable valuation metric for PETQ is its P/B ratio of 3.52. 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 5.31. Over the past year, PETQ's P/B has been as high as 3.52 and as low as 1.99, with a median of 2.41.
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. PETQ has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.45.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 17.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PETQ's P/CF compares to its industry's average P/CF of 37.64. Over the past year, PETQ's P/CF has been as high as 17.45 and as low as 8.36, with a median of 10.33.
Value investors will likely look at more than just these metrics, but the above data helps show that PetIQ is likely undervalued currently. And when considering the strength of its earnings outlook, PETQ sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy PetIQ (PETQ) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
PetIQ (PETQ - Free Report) is a stock many investors are watching right now. PETQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 18.39, which compares to its industry's average of 22.02. Over the last 12 months, PETQ's Forward P/E has been as high as 21.79 and as low as 11.85, with a median of 15.42.
Investors should also note that PETQ holds a PEG ratio of 1.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PETQ's industry has an average PEG of 2.17 right now. Over the last 12 months, PETQ's PEG has been as high as 2.72 and as low as 1.83, with a median of 2.05.
Another notable valuation metric for PETQ is its P/B ratio of 3.52. 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 5.31. Over the past year, PETQ's P/B has been as high as 3.52 and as low as 1.99, with a median of 2.41.
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. PETQ has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.45.
Finally, investors will want to recognize that PETQ has a P/CF ratio of 17.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PETQ's P/CF compares to its industry's average P/CF of 37.64. Over the past year, PETQ's P/CF has been as high as 17.45 and as low as 8.36, with a median of 10.33.
Value investors will likely look at more than just these metrics, but the above data helps show that PetIQ is likely undervalued currently. And when considering the strength of its earnings outlook, PETQ sticks out at as one of the market's strongest value stocks.