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Are Investors Undervaluing Petco Health and Wellness Co. (WOOF) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Petco Health and Wellness Co. (WOOF - Free Report) is a stock many investors are watching right now. WOOF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WOOF has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.65.
Finally, our model also underscores that WOOF has a P/CF ratio of 12.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.17. Within the past 12 months, WOOF's P/CF has been as high as 16.65 and as low as 2.74, with a median of 5.15.
These are just a handful of the figures considered in Petco Health and Wellness Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that WOOF is an impressive value stock right now.
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Are Investors Undervaluing Petco Health and Wellness Co. (WOOF) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Petco Health and Wellness Co. (WOOF - Free Report) is a stock many investors are watching right now. WOOF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WOOF has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.65.
Finally, our model also underscores that WOOF has a P/CF ratio of 12.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.17. Within the past 12 months, WOOF's P/CF has been as high as 16.65 and as low as 2.74, with a median of 5.15.
These are just a handful of the figures considered in Petco Health and Wellness Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that WOOF is an impressive value stock right now.