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Is Premier (PINC) Stock Undervalued 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.

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.

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.

Premier (PINC - Free Report) is a stock many investors are watching right now. PINC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

We should also highlight that PINC has a P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.51. PINC's P/B has been as high as 1.18 and as low as 0.95, with a median of 1.07, over the past year.

Finally, investors will want to recognize that PINC has a P/CF ratio of 8.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PINC's current P/CF looks attractive when compared to its industry's average P/CF of 20.10. Within the past 12 months, PINC's P/CF has been as high as 11.34 and as low as 7.11, with a median of 8.64.

These are just a handful of the figures considered in Premier'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 PINC is an impressive value stock right now.


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