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Is Baxter International (BAX) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.59. This compares to its industry's average Forward P/E of 22.08. Over the past 52 weeks, BAX's Forward P/E has been as high as 14.92 and as low as 10.64, with a median of 12.30.
Investors should also note that BAX holds a PEG ratio of 1.26. 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. BAX's PEG compares to its industry's average PEG of 2.19. Over the last 12 months, BAX's PEG has been as high as 4.33 and as low as 1.20, with a median of 2.13.
Another notable valuation metric for BAX is its P/B ratio of 2.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.34. Within the past 52 weeks, BAX's P/B has been as high as 3.52 and as low as 1.97, with a median of 2.35.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BAX has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.45.
If you're looking for another solid Medical - Products value stock, take a look at Koninklijke Philips (PHG - Free Report) . PHG is a # 2 (Buy) stock with a Value score of A.
Shares of Koninklijke Philips currently holds a Forward P/E ratio of 18.06, and its PEG ratio is 0.94. In comparison, its industry sports average P/E and PEG ratios of 22.08 and 2.19.
PHG's Forward P/E has been as high as 18.13 and as low as 12.29, with a median of 14.35. During the same time period, its PEG ratio has been as high as 1.33, as low as 0.78, with a median of 0.91.
Furthermore, Koninklijke Philips holds a P/B ratio of 2.25 and its industry's price-to-book ratio is 5.34. PHG's P/B has been as high as 2.25, as low as 1.28, with a median of 1.50 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Baxter International and Koninklijke Philips are likely undervalued currently. And when considering the strength of its earnings outlook, BAX and PHG sticks out as one of the market's strongest value stocks.
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Is Baxter International (BAX) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.59. This compares to its industry's average Forward P/E of 22.08. Over the past 52 weeks, BAX's Forward P/E has been as high as 14.92 and as low as 10.64, with a median of 12.30.
Investors should also note that BAX holds a PEG ratio of 1.26. 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. BAX's PEG compares to its industry's average PEG of 2.19. Over the last 12 months, BAX's PEG has been as high as 4.33 and as low as 1.20, with a median of 2.13.
Another notable valuation metric for BAX is its P/B ratio of 2.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.34. Within the past 52 weeks, BAX's P/B has been as high as 3.52 and as low as 1.97, with a median of 2.35.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BAX has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.45.
If you're looking for another solid Medical - Products value stock, take a look at Koninklijke Philips (PHG - Free Report) . PHG is a # 2 (Buy) stock with a Value score of A.
Shares of Koninklijke Philips currently holds a Forward P/E ratio of 18.06, and its PEG ratio is 0.94. In comparison, its industry sports average P/E and PEG ratios of 22.08 and 2.19.
PHG's Forward P/E has been as high as 18.13 and as low as 12.29, with a median of 14.35. During the same time period, its PEG ratio has been as high as 1.33, as low as 0.78, with a median of 0.91.
Furthermore, Koninklijke Philips holds a P/B ratio of 2.25 and its industry's price-to-book ratio is 5.34. PHG's P/B has been as high as 2.25, as low as 1.28, with a median of 1.50 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Baxter International and Koninklijke Philips are likely undervalued currently. And when considering the strength of its earnings outlook, BAX and PHG sticks out as one of the market's strongest value stocks.