Is OSI Systems (OSIS) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is OSI Systems (OSIS). OSIS 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 14.66, while its industry has an average P/E of 20.13. OSIS's Forward P/E has been as high as 19.33 and as low as 12.04, with a median of 14.85, all within the past year.
We also note that OSIS holds a PEG ratio of 1.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OSIS's industry currently sports an average PEG of 2.34. OSIS's PEG has been as high as 1.76 and as low as 1.09, with a median of 1.35, all within the past year.
Another notable valuation metric for OSIS is its P/B ratio of 2.79. The P/B ratio pits a stock's market value against 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 4.40. Over the past year, OSIS's P/B has been as high as 3.17 and as low as 2.06, with a median of 2.65.
Finally, investors should note that OSIS has a P/CF ratio of 15.47. 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. OSIS's current P/CF looks attractive when compared to its industry's average P/CF of 25.03. Over the past 52 weeks, OSIS's P/CF has been as high as 18.07 and as low as 9.10, with a median of 14.96.
These are only a few of the key metrics included in OSI Systems'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, OSIS looks like an impressive value stock at the moment.
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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
