Are These Medical Stocks Undervalued 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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

BellRing Brands (BRBR) is a stock many investors are watching right now. BRBR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 19.42, while its industry has an average P/E of 25.70. BRBR's Forward P/E has been as high as 32.38 and as low as 19.42, with a median of 28.72, all within the past year.

Investors will also notice that BRBR has a PEG ratio of 0.67. 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. BRBR's industry has an average PEG of 1.81 right now. Within the past year, BRBR's PEG has been as high as 2.02 and as low as 0.67, with a median of 1.29.

Finally, our model also underscores that BRBR has a P/CF ratio of 11.22. 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. BRBR's current P/CF looks attractive when compared to its industry's average P/CF of 19.27. BRBR's P/CF has been as high as 20.29 and as low as 11.22, with a median of 16.30, all within the past year.

Another great Medical - Products stock you could consider is Owens & Minor (OMI), which is a # 2 (Buy) stock with a Value Score of A.

Shares of Owens & Minor currently holds a Forward P/E ratio of 12.48, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 25.70 and 1.81.

OMI's price-to-earnings ratio has been as high as 14.29 and as low as 8.74, with a median of 11.48, while its PEG ratio has been as high as 0.85 and as low as 0.20, with a median of 0.56, all within the past year.

Owens & Minor also has a P/B ratio of 3.56 compared to its industry's price-to-book ratio of 3.06. Over the past year, its P/B ratio has been as high as 5.02, as low as 2.62, with a median of 3.51.

These are only a few of the key metrics included in BellRing Brands and Owens & Minor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BRBR and OMI look like an impressive value stock at the moment.

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BellRing Brands, Inc. (BRBR) : Free Stock Analysis Report
 
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