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Should Value Investors Buy Quest Diagnostics (DGX) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Quest Diagnostics (DGX - Free Report) . DGX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.53, while its industry has an average P/E of 20.55. Over the last 12 months, DGX's Forward P/E has been as high as 17.06 and as low as 13.75, with a median of 15.64.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.47. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.93. Over the past 12 months, DGX's P/B has been as high as 2.67 and as low as 2.16, with a median of 2.43.
Finally, our model also underscores that DGX has a P/CF ratio of 13.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DGX's P/CF compares to its industry's average P/CF of 25.24. DGX's P/CF has been as high as 14.16 and as low as 10.82, with a median of 12.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Quest Diagnostics is likely undervalued currently. And when considering the strength of its earnings outlook, DGX sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Quest Diagnostics (DGX) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Quest Diagnostics (DGX - Free Report) . DGX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.53, while its industry has an average P/E of 20.55. Over the last 12 months, DGX's Forward P/E has been as high as 17.06 and as low as 13.75, with a median of 15.64.
Another valuation metric that we should highlight is DGX's P/B ratio of 2.47. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.93. Over the past 12 months, DGX's P/B has been as high as 2.67 and as low as 2.16, with a median of 2.43.
Finally, our model also underscores that DGX has a P/CF ratio of 13.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DGX's P/CF compares to its industry's average P/CF of 25.24. DGX's P/CF has been as high as 14.16 and as low as 10.82, with a median of 12.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Quest Diagnostics is likely undervalued currently. And when considering the strength of its earnings outlook, DGX sticks out at as one of the market's strongest value stocks.