Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Patterson Cos. (PDCO)
St. Paul, MN-headquartered Patterson Companies Inc. is a value-added specialty distributor of dental and animal health products in the United States, Canada. It supplies only animal health products in the United Kingdom.
PDCO boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Patterson Cos. are trading at a forward earnings multiple of 12.1X, as well as a PEG Ratio of 1.3, a Price/Cash Flow ratio of 9.2X, and a Price/Sales ratio of 0.4X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for PDCO, while the Zacks Consensus Estimate has increased $0.02 to $2.50 per share. PDCO also holds an average earnings surprise of 8.5%.
Investors should take the time to consider PDCO for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
