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Are Investors Undervaluing Universal Health Services (UHS) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Universal Health Services (UHS - Free Report) . UHS 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 13.63, while its industry has an average P/E of 16.08. Over the past 52 weeks, UHS's Forward P/E has been as high as 15.12 and as low as 10.83, with a median of 13.04.
UHS is also sporting a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UHS's industry currently sports an average PEG of 1.18. Over the past 52 weeks, UHS's PEG has been as high as 1.56 and as low as 0.65, with a median of 0.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Health Services is likely undervalued currently. And when considering the strength of its earnings outlook, UHS sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Universal Health Services (UHS) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Universal Health Services (UHS - Free Report) . UHS 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 13.63, while its industry has an average P/E of 16.08. Over the past 52 weeks, UHS's Forward P/E has been as high as 15.12 and as low as 10.83, with a median of 13.04.
UHS is also sporting a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UHS's industry currently sports an average PEG of 1.18. Over the past 52 weeks, UHS's PEG has been as high as 1.56 and as low as 0.65, with a median of 0.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Universal Health Services is likely undervalued currently. And when considering the strength of its earnings outlook, UHS sticks out at as one of the market's strongest value stocks.