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Should Value Investors Buy Encompass Health (EHC) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that EHC holds a PEG ratio of 1.22. 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. EHC's PEG compares to its industry's average PEG of 2.13. Over the past 52 weeks, EHC's PEG has been as high as 1.50 and as low as 1.19, with a median of 1.30.
Investors should also recognize that EHC has a P/B ratio of 3.83. The P/B ratio is used to compare a stock's market value with 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 3.94. EHC's P/B has been as high as 3.94 and as low as 2.97, with a median of 3.56, over the past year.
Finally, our model also underscores that EHC has a P/CF ratio of 14.33. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 25.23. EHC's P/CF has been as high as 14.64 and as low as 10.53, with a median of 12.95, all within the past year.
These are just a handful of the figures considered in Encompass Health'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 EHC is an impressive value stock right now.
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Should Value Investors Buy Encompass Health (EHC) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Encompass Health (EHC - Free Report) is a stock many investors are watching right now. EHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that EHC holds a PEG ratio of 1.22. 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. EHC's PEG compares to its industry's average PEG of 2.13. Over the past 52 weeks, EHC's PEG has been as high as 1.50 and as low as 1.19, with a median of 1.30.
Investors should also recognize that EHC has a P/B ratio of 3.83. The P/B ratio is used to compare a stock's market value with 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 3.94. EHC's P/B has been as high as 3.94 and as low as 2.97, with a median of 3.56, over the past year.
Finally, our model also underscores that EHC has a P/CF ratio of 14.33. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 25.23. EHC's P/CF has been as high as 14.64 and as low as 10.53, with a median of 12.95, all within the past year.
These are just a handful of the figures considered in Encompass Health'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 EHC is an impressive value stock right now.