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Are Investors Undervaluing Fresenius Medical Care AG & Co. (FMS) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Fresenius Medical Care AG & Co. (FMS - Free Report) . FMS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.35 right now. For comparison, its industry sports an average P/E of 32.57. Over the past year, FMS's Forward P/E has been as high as 16.85 and as low as 10.51, with a median of 11.94.

FMS is also sporting a PEG ratio of 0.87. 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 has an average PEG of 2.58 right now. FMS's PEG has been as high as 1.15 and as low as 0.78, with a median of 0.91, all within the past year.

These are just a handful of the figures considered in Fresenius Medical Care AG & 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 FMS is an impressive value stock right now.


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