Are Investors Undervaluing Smith & Nephew SNATS (SNN) 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 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 Smith & Nephew SNATS (SNN). SNN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.47, while its industry has an average P/E of 20.60. Over the past 52 weeks, SNN's Forward P/E has been as high as 19.03 and as low as 12.80, with a median of 16.41.
SNN is also sporting a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNN's industry has an average PEG of 2.58 right now. SNN's PEG has been as high as 3.26 and as low as 1.25, with a median of 2.08, all within the past year.
Investors should also recognize that SNN has a P/B ratio of 2.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.30. Over the past year, SNN's P/B has been as high as 2.72 and as low as 1.77, with a median of 2.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Smith & Nephew SNATS is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNN feels like a great value stock at the moment.
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Smith & Nephew SNATS, Inc. (SNN) : Free Stock Analysis Report
