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Are Investors Undervaluing Phibro Animal Health (PAHC) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Phibro Animal Health (PAHC - Free Report) . PAHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.64, while its industry has an average P/E of 22.57. Over the past year, PAHC's Forward P/E has been as high as 15.21 and as low as 9.32, with a median of 12.58.
Another notable valuation metric for PAHC is its P/B ratio of 3.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PAHC's current P/B looks attractive when compared to its industry's average P/B of 8.48. PAHC's P/B has been as high as 4 and as low as 1.60, with a median of 2.92, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAHC has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.56.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 18.19. 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. This stock's P/CF looks attractive against its industry's average P/CF of 40.53. Over the past year, PAHC's P/CF has been as high as 22.96 and as low as 8.55, with a median of 16.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Phibro Animal Health is likely undervalued currently. And when considering the strength of its earnings outlook, PAHC sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Phibro Animal Health (PAHC) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Phibro Animal Health (PAHC - Free Report) . PAHC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.64, while its industry has an average P/E of 22.57. Over the past year, PAHC's Forward P/E has been as high as 15.21 and as low as 9.32, with a median of 12.58.
Another notable valuation metric for PAHC is its P/B ratio of 3.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PAHC's current P/B looks attractive when compared to its industry's average P/B of 8.48. PAHC's P/B has been as high as 4 and as low as 1.60, with a median of 2.92, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAHC has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.56.
Finally, investors will want to recognize that PAHC has a P/CF ratio of 18.19. 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. This stock's P/CF looks attractive against its industry's average P/CF of 40.53. Over the past year, PAHC's P/CF has been as high as 22.96 and as low as 8.55, with a median of 16.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Phibro Animal Health is likely undervalued currently. And when considering the strength of its earnings outlook, PAHC sticks out at as one of the market's strongest value stocks.