Are Investors Undervaluing Smiths Group (SMGZY) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Smiths Group (SMGZY). SMGZY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.45 right now. For comparison, its industry sports an average P/E of 38.14. Over the past year, SMGZY's Forward P/E has been as high as 16.75 and as low as 13.17, with a median of 15.12.
Investors will also notice that SMGZY has a PEG ratio of 1.17. 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. SMGZY's industry has an average PEG of 1.18 right now. Over the last 12 months, SMGZY's PEG has been as high as 1.71 and as low as 1.15, with a median of 1.52.
These are just a handful of the figures considered in Smiths Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SMGZY is an impressive value stock right now.
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Smiths Group PLC (SMGZY) : Free Stock Analysis Report