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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 biote Corp. (BTMD). BTMD is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.73 right now. For comparison, its industry sports an average P/E of 21.25. BTMD's Forward P/E has been as high as 43.79 and as low as 5.35, with a median of 10.83, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BTMD has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.45.
Finally, investors will want to recognize that BTMD has a P/CF ratio of 6.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BTMD's P/CF compares to its industry's average P/CF of 12.13. Within the past 12 months, BTMD's P/CF has been as high as 30.62 and as low as 4.70, with a median of 16.93.
These are only a few of the key metrics included in biote Corp.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BTMD looks like an impressive value stock at the moment.
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biote Corp. (BTMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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