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Are Investors Undervaluing Baxter International (BAX) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.09. This compares to its industry's average Forward P/E of 22.15. Over the last 12 months, BAX's Forward P/E has been as high as 14.92 and as low as 10.64, with a median of 12.25.
Investors will also notice that BAX has a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAX's industry currently sports an average PEG of 2.18. Within the past year, BAX's PEG has been as high as 4.33 and as low as 1.20, with a median of 2.07.
Another notable valuation metric for BAX is its P/B ratio of 2.51. The P/B ratio pits a stock's market value against 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 5.36. Over the past year, BAX's P/B has been as high as 3.39 and as low as 1.97, with a median of 2.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.6.
These are only a few of the key metrics included in Baxter International'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, BAX looks like an impressive value stock at the moment.
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Are Investors Undervaluing Baxter International (BAX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Baxter International (BAX - Free Report) . BAX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.09. This compares to its industry's average Forward P/E of 22.15. Over the last 12 months, BAX's Forward P/E has been as high as 14.92 and as low as 10.64, with a median of 12.25.
Investors will also notice that BAX has a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAX's industry currently sports an average PEG of 2.18. Within the past year, BAX's PEG has been as high as 4.33 and as low as 1.20, with a median of 2.07.
Another notable valuation metric for BAX is its P/B ratio of 2.51. The P/B ratio pits a stock's market value against 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 5.36. Over the past year, BAX's P/B has been as high as 3.39 and as low as 1.97, with a median of 2.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAX has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.6.
These are only a few of the key metrics included in Baxter International'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, BAX looks like an impressive value stock at the moment.