Are Investors Undervaluing GoHealth (GOCO) Right Now?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is GoHealth (GOCO). GOCO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that GOCO has a P/B ratio of 0.74. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.49. Within the past 52 weeks, GOCO's P/B has been as high as 0.97 and as low as 0.18, with a median of 0.69.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GOCO has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.96.
NN Group (NNGRY) may be another strong Insurance - Life Insurance stock to add to your shortlist. NNGRY is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of NN Group currently holds a Forward P/E ratio of 4.44, and its PEG ratio is 0.35. In comparison, its industry sports average P/E and PEG ratios of 6.73 and 0.65.
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GoHealth, Inc. (GOCO) : Free Stock Analysis Report
NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report