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Is HCA Healthcare (HCA) Stock Undervalued Right Now?

Zacks Equity Research
·2-min read

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is HCA Healthcare (HCA). HCA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.38 right now. For comparison, its industry sports an average P/E of 14.50. Over the past 52 weeks, HCA's Forward P/E has been as high as 16.07 and as low as 11.15, with a median of 14.43.

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HCA is also sporting a PEG ratio of 1.43. 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. HCA's industry currently sports an average PEG of 1.50. HCA's PEG has been as high as 1.94 and as low as 1.08, with a median of 1.53, all within the past year.

These are only a few of the key metrics included in HCA Healthcare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HCA looks like an impressive value stock at the moment.

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HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research