Are Investors Undervaluing Noah Holdings (NOAH) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Noah Holdings (NOAH). NOAH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 4.90, while its industry has an average P/E of 10.87. Over the past 52 weeks, NOAH's Forward P/E has been as high as 13.82 and as low as 4.17, with a median of 8.84.

Investors will also notice that NOAH has a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NOAH's PEG compares to its industry's average PEG of 0.64. Over the last 12 months, NOAH's PEG has been as high as 0.67 and as low as 0.38, with a median of 0.50.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NOAH has a P/S ratio of 1.69. This compares to its industry's average P/S of 2.45.

Finally, investors should note that NOAH has a P/CF ratio of 5.46. 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. NOAH's P/CF compares to its industry's average P/CF of 12.89. Over the past year, NOAH's P/CF has been as high as 9.52 and as low as -54.29, with a median of 5.21.

These are just a handful of the figures considered in Noah Holdings'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 NOAH is an impressive value stock right now.

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