Please try another search
Investors interested in stocks from the Medical Services sector have probably already heard of AMN Healthcare Services (AMN) and HealthEquity (HQY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while HealthEquity has a Zacks Rank of #2 (Buy) right now. This means that AMN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMN currently has a forward P/E ratio of 18.21, while HQY has a forward P/E of 47.04. We also note that AMN has a PEG ratio of 1.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HQY currently has a PEG ratio of 2.36.
Another notable valuation metric for AMN is its P/B ratio of 3.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HQY has a P/B of 7.41.
These metrics, and several others, help AMN earn a Value grade of B, while HQY has been given a Value grade of D.
AMN stands above HQY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMN is the superior value option right now.
Shares of Alibaba (NYSE:BABA) are on a tear to start off 2025. The consumer discretionary and tech stock is up by 52% this year as of the Feb. 25 close. The company’s cloud...
Every investor should know the term CEP, or customer engagement platform, because it is central to businesses' use of AI. CEPs provide software services to connect and communicate...
As markets try to look through the blizzard of policy changes flowing out of Washington, the crowd has shifted its preferences considerably in recent weeks based on a sector lens....
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.