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Should Value Investors Buy Koninklijke Philips (PHG) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Koninklijke Philips (PHG - Free Report) . PHG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.98, while its industry has an average P/E of 21.55. Over the last 12 months, PHG's Forward P/E has been as high as 18.69 and as low as 12.29, with a median of 14.54.
Investors should also note that PHG holds a PEG ratio of 0.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHG's industry has an average PEG of 2.13 right now. Over the last 12 months, PHG's PEG has been as high as 1.33 and as low as 0.78, with a median of 0.92.
Another valuation metric that we should highlight is PHG's P/B ratio of 2.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.16. Over the past 12 months, PHG's P/B has been as high as 2.40 and as low as 1.28, with a median of 1.62.
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. PHG has a P/S ratio of 1.53. This compares to its industry's average P/S of 1.54.
These are only a few of the key metrics included in Koninklijke Philips'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, PHG looks like an impressive value stock at the moment.
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Should Value Investors Buy Koninklijke Philips (PHG) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Koninklijke Philips (PHG - Free Report) . PHG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.98, while its industry has an average P/E of 21.55. Over the last 12 months, PHG's Forward P/E has been as high as 18.69 and as low as 12.29, with a median of 14.54.
Investors should also note that PHG holds a PEG ratio of 0.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHG's industry has an average PEG of 2.13 right now. Over the last 12 months, PHG's PEG has been as high as 1.33 and as low as 0.78, with a median of 0.92.
Another valuation metric that we should highlight is PHG's P/B ratio of 2.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.16. Over the past 12 months, PHG's P/B has been as high as 2.40 and as low as 1.28, with a median of 1.62.
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. PHG has a P/S ratio of 1.53. This compares to its industry's average P/S of 1.54.
These are only a few of the key metrics included in Koninklijke Philips'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, PHG looks like an impressive value stock at the moment.