Yahoo Finance Should Value Investors Buy Phibro Animal Health (PAHC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Phibro Animal Health (PAHC). PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.81, which compares to its industry's average of 20.04. Over the past year, PAHC's Forward P/E has been as high as 11.82 and as low as 8.01, with a median of 10.26.
We should also highlight that PAHC has a P/B ratio of 1.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.44. Over the past 12 months, PAHC's P/B has been as high as 2.36 and as low as 1.42, with a median of 1.90.
Finally, we should also recognize that PAHC has a P/CF ratio of 10.31. 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. PAHC's P/CF compares to its industry's average P/CF of 32.77. Over the past 52 weeks, PAHC's P/CF has been as high as 10.96 and as low as 6.93, with a median of 8.87.
These are just a handful of the figures considered in Phibro Animal Health'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 PAHC is an impressive value stock right now.
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Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report
