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Is Patterson Cos. (PDCO) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Patterson Cos. (PDCO - Free Report) . PDCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.19, which compares to its industry's average of 17.47. Over the past year, PDCO's Forward P/E has been as high as 16.40 and as low as 11.42, with a median of 14.20.
Investors should also recognize that PDCO has a P/B ratio of 1.49. 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. PDCO's current P/B looks attractive when compared to its industry's average P/B of 4.43. Over the past 12 months, PDCO's P/B has been as high as 1.60 and as low as 1.02, with a median of 1.39.
Finally, investors should note that PDCO has a P/CF ratio of 16. 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. PDCO's current P/CF looks attractive when compared to its industry's average P/CF of 38.10. PDCO's P/CF has been as high as 16 and as low as 7.56, with a median of 12.29, all within the past year.
These are just a handful of the figures considered in Patterson Cos.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PDCO is an impressive value stock right now.
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Is Patterson Cos. (PDCO) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Patterson Cos. (PDCO - Free Report) . PDCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.19, which compares to its industry's average of 17.47. Over the past year, PDCO's Forward P/E has been as high as 16.40 and as low as 11.42, with a median of 14.20.
Investors should also recognize that PDCO has a P/B ratio of 1.49. 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. PDCO's current P/B looks attractive when compared to its industry's average P/B of 4.43. Over the past 12 months, PDCO's P/B has been as high as 1.60 and as low as 1.02, with a median of 1.39.
Finally, investors should note that PDCO has a P/CF ratio of 16. 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. PDCO's current P/CF looks attractive when compared to its industry's average P/CF of 38.10. PDCO's P/CF has been as high as 16 and as low as 7.56, with a median of 12.29, all within the past year.
These are just a handful of the figures considered in Patterson Cos.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PDCO is an impressive value stock right now.