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Are Investors Undervaluing AdaptHealth (AHCO) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is AdaptHealth (AHCO - Free Report) . AHCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.51 right now. For comparison, its industry sports an average P/E of 22.18. Over the past 52 weeks, AHCO's Forward P/E has been as high as 16.88 and as low as -3.40, with a median of 10.05.
Investors should also note that AHCO holds a PEG ratio of 1.28. 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. AHCO's industry currently sports an average PEG of 2.15. Within the past year, AHCO's PEG has been as high as 1.37 and as low as -0.21, with a median of 0.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AdaptHealth is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHCO feels like a great value stock at the moment.
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Are Investors Undervaluing AdaptHealth (AHCO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is AdaptHealth (AHCO - Free Report) . AHCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.51 right now. For comparison, its industry sports an average P/E of 22.18. Over the past 52 weeks, AHCO's Forward P/E has been as high as 16.88 and as low as -3.40, with a median of 10.05.
Investors should also note that AHCO holds a PEG ratio of 1.28. 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. AHCO's industry currently sports an average PEG of 2.15. Within the past year, AHCO's PEG has been as high as 1.37 and as low as -0.21, with a median of 0.61.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AdaptHealth is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHCO feels like a great value stock at the moment.