Yahoo Finance Is Koninklijke Philips (PHG) Stock Undervalued Right Now?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Koninklijke Philips (PHG). PHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.82, while its industry has an average P/E of 22.79. Over the past year, PHG's Forward P/E has been as high as 25.96 and as low as 9.44, with a median of 13.46.
We also note that PHG holds a PEG ratio of 0.94. 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. PHG's PEG compares to its industry's average PEG of 2.69. Within the past year, PHG's PEG has been as high as 1.28 and as low as 0.85, with a median of 1.04.
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. PHG has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.59.
Perrigo (PRGO) may be another strong Medical - Products stock to add to your shortlist. PRGO is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Perrigo holds a P/B ratio of 0.92 and its industry's price-to-book ratio is 4.58. PRGO's P/B has been as high as 1.21, as low as 0.91, with a median of 1.02 over the past 12 months.
These are just a handful of the figures considered in Koninklijke Philips and Perrigo'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 PHG and PRGO is an impressive value stock right now.
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Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report
Perrigo Company plc (PRGO) : Free Stock Analysis Report
