雅虎香港財經 Should Value Investors Buy Koninklijke Philips (PHG) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Koninklijke Philips (PHG). PHG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 18.09, while its industry has an average P/E of 22.20. Over the last 12 months, PHG's Forward P/E has been as high as 18.27 and as low as 12.29, with a median of 14.35.
PHG is also sporting a PEG ratio of 0.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHG's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, PHG's PEG has been as high as 1.33 and as low as 0.78, with a median of 0.92.
Another notable valuation metric for PHG is its P/B ratio of 2.26. 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 stock's P/B looks attractive against its industry's average P/B of 5.35. Over the past 12 months, PHG's P/B has been as high as 2.28 and as low as 1.28, with a median of 1.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Koninklijke Philips is likely undervalued currently. And when considering the strength of its earnings outlook, PHG sticks out at as one of the market's strongest value stocks.
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
Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report
