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Is CVS Health (CVS) a Great Value Stock 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 CVS Health (CVS - Free Report) . CVS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.26, while its industry has an average P/E of 10.03. Over the past year, CVS's Forward P/E has been as high as 13.41 and as low as 8.62, with a median of 11.18.
Investors should also note that CVS holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's PEG compares to its industry's average PEG of 0.97. Over the past 52 weeks, CVS's PEG has been as high as 1.43 and as low as 0.87, with a median of 1.16.
Another valuation metric that we should highlight is CVS's P/B ratio of 1.73. 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 attractive against its industry's average P/B of 1.95. Within the past 52 weeks, CVS's P/B has been as high as 2.49 and as low as 1.60, with a median of 2.01.
Finally, investors will want to recognize that CVS has a P/CF ratio of 7.19. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.80. CVS's P/CF has been as high as 10.78 and as low as 6.61, with a median of 8.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CVS Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVS feels like a great value stock at the moment.
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Is CVS Health (CVS) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 CVS Health (CVS - Free Report) . CVS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.26, while its industry has an average P/E of 10.03. Over the past year, CVS's Forward P/E has been as high as 13.41 and as low as 8.62, with a median of 11.18.
Investors should also note that CVS holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's PEG compares to its industry's average PEG of 0.97. Over the past 52 weeks, CVS's PEG has been as high as 1.43 and as low as 0.87, with a median of 1.16.
Another valuation metric that we should highlight is CVS's P/B ratio of 1.73. 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 attractive against its industry's average P/B of 1.95. Within the past 52 weeks, CVS's P/B has been as high as 2.49 and as low as 1.60, with a median of 2.01.
Finally, investors will want to recognize that CVS has a P/CF ratio of 7.19. 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 stock's P/CF looks attractive against its industry's average P/CF of 7.80. CVS's P/CF has been as high as 10.78 and as low as 6.61, with a median of 8.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CVS Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVS feels like a great value stock at the moment.