Yahoo Finance Is Addus HomeCare (ADUS) Stock Undervalued 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.
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 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.
Addus HomeCare (ADUS) is a stock many investors are watching right now. ADUS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 19.56 right now. For comparison, its industry sports an average P/E of 20.68. Over the past 52 weeks, ADUS's Forward P/E has been as high as 28.16 and as low as 19.18, with a median of 24.52.
Investors should also note that ADUS holds a PEG ratio of 1.66. 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. ADUS's industry has an average PEG of 2.98 right now. Within the past year, ADUS's PEG has been as high as 2.50 and as low as 1.64, with a median of 2.12.
Another valuation metric that we should highlight is ADUS's P/B ratio of 2.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ADUS's current P/B looks attractive when compared to its industry's average P/B of 2.74. Over the past 12 months, ADUS's P/B has been as high as 2.95 and as low as 2.02, with a median of 2.58.
Finally, investors should note that ADUS has a P/CF ratio of 20.76. 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 23.50. Over the past year, ADUS's P/CF has been as high as 30.54 and as low as 20.20, with a median of 26.69.
Investors could also keep in mind DaVita (DVA), an Medical - Outpatient and Home Healthcare stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
DaVita is trading at a forward earnings multiple of 15.73 at the moment, with a PEG ratio of 1.87. This compares to its industry's average P/E of 20.68 and average PEG ratio of 2.98.
Over the last 12 months, DVA's P/E has been as high as 15.73, as low as 7.30, with a median of 11.03, and its PEG ratio has been as high as 1.87, as low as 0.80, with a median of 1.22.
Additionally, DaVita has a P/B ratio of 10.40 while its industry's price-to-book ratio sits at 2.74. For DVA, this valuation metric has been as high as 12.74, as low as 7.06, with a median of 9.12 over the past year.
These are just a handful of the figures considered in Addus HomeCare and DaVita'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 ADUS and DVA is an impressive value stock right now.
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Addus HomeCare Corporation (ADUS) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
