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Are Investors Undervaluing Avanos Medical (AVNS) Right Now? September 19, 2024
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Avanos Medical (AVNS - Free Report) is a stock many investors are watching right now. AVNS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.24, which compares to its industry's average of 33.46. AVNS's Forward P/E has been as high as 21.37 and as low as 11.70, with a median of 13.50, all within the past year.
We also note that AVNS holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVNS's industry currently sports an average PEG of 2.59. AVNS's PEG has been as high as 1.72 and as low as 0.97, with a median of 1.09, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AVNS has a P/S ratio of 1.63. This compares to its industry's average P/S of 2.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Avanos Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AVNS feels like a great value stock at the moment.
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Avanos Medical (AVNS - Free Report) is a stock many investors are watching right now. AVNS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.24, which compares to its industry's average of 33.46. AVNS's Forward P/E has been as high as 21.37 and as low as 11.70, with a median of 13.50, all within the past year.
We also note that AVNS holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVNS's industry currently sports an average PEG of 2.59. AVNS's PEG has been as high as 1.72 and as low as 0.97, with a median of 1.09, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AVNS has a P/S ratio of 1.63. This compares to its industry's average P/S of 2.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Avanos Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AVNS feels like a great value stock at the moment.