Are Investors Undervaluing OSI Systems (OSIS) Right Now?
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.
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.
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 OSI Systems (OSIS). OSIS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 15.06. This compares to its industry's average Forward P/E of 20.44. OSIS's Forward P/E has been as high as 19.33 and as low as 12.04, with a median of 14.99, all within the past year.
We also note that OSIS holds a PEG ratio of 1.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSIS's PEG compares to its industry's average PEG of 2.36. Over the past 52 weeks, OSIS's PEG has been as high as 1.76 and as low as 1.09, with a median of 1.36.
Investors should also recognize that OSIS has a P/B ratio of 2.87. 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 4.56. Over the past 12 months, OSIS's P/B has been as high as 3.17 and as low as 2.06, with a median of 2.68.
Finally, we should also recognize that OSIS has a P/CF ratio of 15.94. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.74. Within the past 12 months, OSIS's P/CF has been as high as 18.07 and as low as 9.10, with a median of 15.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OSI Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSIS feels like a great value stock at the moment.
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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
