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Should Value Investors Buy Fresenius Medical Care AG & Co. (FMS) Stock?

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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 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 company value investors might notice is Fresenius Medical Care AG & Co. (FMS - Free Report) . FMS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.52, while its industry has an average P/E of 33.56. FMS's Forward P/E has been as high as 16.85 and as low as 10.51, with a median of 11.94, all within the past year.

Investors should also note that FMS holds a PEG ratio of 0.93. 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. FMS's industry currently sports an average PEG of 2.68. Over the past 52 weeks, FMS's PEG has been as high as 1.15 and as low as 0.82, with a median of 0.92.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fresenius Medical Care AG & Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMS feels like a great value stock at the moment.


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