Here's Why GE HealthCare Technologies (GEHC) is a Strong Value Stock
In This Article:
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
GE HealthCare Technologies (GEHC)
Chicago, IL-based GE HealthCare Technologies Inc. or GE HealthCare is one of the leading providers of medical technology, pharmaceutical diagnostics, and digital solutions with focus on precision care. The company was formed on Jan 3, 2023, following a spin-off by its parent company — the General Electric Company.
GEHC is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 20.3X for the current fiscal year compared to the Medical - Products industry's P/E of 25.1X. Additionally, GEHC has a PEG Ratio of 3.1 and a Price/Cash Flow ratio of 16.5X. Value investors should also note GEHC's Price/Sales ratio of 2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $4.29 per share. GEHC has an average earnings surprise of 5%.
GEHC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong 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
GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report