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.
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 value investors might notice is Dentsply Sirona (XRAY). XRAY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.1. This compares to its industry's average Forward P/E of 16.88. XRAY's Forward P/E has been as high as 12.54 and as low as 6.77, with a median of 9.78, all within the past year.
We also note that XRAY holds a PEG ratio of 1.10. 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. XRAY's PEG compares to its industry's average PEG of 1.77. Over the last 12 months, XRAY's PEG has been as high as 1.91 and as low as 0.84, with a median of 1.11.
Investors should also recognize that XRAY has a P/B ratio of 1.57. Investors use the P/B ratio to look at a stock's market value versus 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 4.60. Over the past year, XRAY's P/B has been as high as 2.16 and as low as 1.24, with a median of 1.64.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. XRAY has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.27.
Finally, investors will want to recognize that XRAY has a P/CF ratio of 15.33. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. XRAY's P/CF compares to its industry's average P/CF of 17.58. XRAY's P/CF has been as high as 19.05 and as low as 7.83, with a median of 12.22, all within the past year.
These are just a handful of the figures considered in Dentsply Sirona'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 XRAY is an impressive value stock right now.
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DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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