U.S. markets closed
  • S&P 500

    4,280.15
    +72.88 (+1.73%)
     
  • Dow 30

    33,761.05
    +424.38 (+1.27%)
     
  • Nasdaq

    13,047.19
    +267.27 (+2.09%)
     
  • Russell 2000

    2,016.62
    +41.36 (+2.09%)
     
  • Crude Oil

    91.88
    -2.46 (-2.61%)
     
  • Gold

    1,818.90
    +11.70 (+0.65%)
     
  • Silver

    20.83
    +0.49 (+2.39%)
     
  • EUR/USD

    1.0257
    -0.0068 (-0.66%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • GBP/USD

    1.2139
    -0.0064 (-0.52%)
     
  • USD/JPY

    133.4800
    +0.4810 (+0.36%)
     
  • BTC-USD

    24,554.27
    +535.28 (+2.23%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     

Are These Medical Stocks Undervalued Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

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.

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 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.

Owens & Minor (OMI) is a stock many investors are watching right now. OMI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.20 right now. For comparison, its industry sports an average P/E of 24.52. Over the past year, OMI's Forward P/E has been as high as 14.53 and as low as 8.74, with a median of 11.52.

Finally, investors will want to recognize that OMI has a P/CF ratio of 9.48. 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. OMI's current P/CF looks attractive when compared to its industry's average P/CF of 13.50. Over the past 52 weeks, OMI's P/CF has been as high as 20.45 and as low as 7.07, with a median of 9.99.

Another great Medical - Products stock you could consider is Quidel (QDEL), which is a # 1 (Strong Buy) stock with a Value Score of A.

Quidel is trading at a forward earnings multiple of 16.52 at the moment, with a PEG ratio of 1.03. This compares to its industry's average P/E of 24.52 and average PEG ratio of 2.01.

QDEL's Forward P/E has been as high as 31.50 and as low as 4.02, with a median of 16.37. During the same time period, its PEG ratio has been as high as 1.03, as low as 0.16, with a median of 0.28.

Furthermore, Quidel holds a P/B ratio of 2.26 and its industry's price-to-book ratio is 2.86. QDEL's P/B has been as high as 5.43, as low as 1.91, with a median of 3.50 over the past 12 months.

These are only a few of the key metrics included in Owens & Minor and Quidel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OMI and QDEL look like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Owens & Minor, Inc. (OMI) : Free Stock Analysis Report
 
Quidel Corporation (QDEL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.