Is GoHealth (GOCO) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 GoHealth (GOCO). GOCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GOCO's P/B ratio of 0.81. 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. This stock's P/B looks solid versus its industry's average P/B of 1.74. Within the past 52 weeks, GOCO's P/B has been as high as 0.97 and as low as 0.32, with a median of 0.72.
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. GOCO has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.08.
These are only a few of the key metrics included in GoHealth'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, GOCO looks like an impressive value stock at the moment.
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GoHealth, Inc. (GOCO) : Free Stock Analysis Report
