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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Apollo Medical Holdings, Inc. (AMEH). AMEH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 24.46 right now. For comparison, its industry sports an average P/E of 41.43. Over the past 52 weeks, AMEH's Forward P/E has been as high as 26.83 and as low as 17.33, with a median of 20.57.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMEH has a P/S ratio of 2.11. This compares to its industry's average P/S of 3.64.
Finally, investors should note that AMEH has a P/CF ratio of 17.15. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 32.78. Over the past year, AMEH's P/CF has been as high as 18.13 and as low as 11.46, with a median of 14.46.
Value investors will likely look at more than just these metrics, but the above data helps show that Apollo Medical Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, AMEH sticks out at as one of the market's strongest value stocks.
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Apollo Medical Holdings, Inc. (AMEH) : Free Stock Analysis Report
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