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, 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.
USANA Health Sciences (USNA) is a stock many investors are watching right now. USNA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is USNA's P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. USNA's current P/B looks attractive when compared to its industry's average P/B of 1.52. Over the past 12 months, USNA's P/B has been as high as 1.78 and as low as 0.83, with a median of 1.28.
Finally, investors will want to recognize that USNA has a P/CF ratio of 9.05. 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. USNA's current P/CF looks attractive when compared to its industry's average P/CF of 11.79. Over the past year, USNA's P/CF has been as high as 11.91 and as low as 7.18, with a median of 9.53.
Value investors will likely look at more than just these metrics, but the above data helps show that USANA Health Sciences is likely undervalued currently. And when considering the strength of its earnings outlook, USNA sticks out as one of the market's strongest value stocks.
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USANA Health Sciences, Inc. (USNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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