Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Universal Health Services (UHS)
King of Prussia, PA-based Universal Health Services Inc. owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers.
UHS sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - Hospital industry's P/E of 13.8X, shares of Universal Health Services are trading at a forward P/E of 12.8X. UHS also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 7.1X, and a Price/Sales ratio of 0.7X.
A company's earnings performance is important for value investors as well. For fiscal 2023, five analysts revised their earnings estimate higher in the last 60 days for UHS, while the Zacks Consensus Estimate has increased $0.23 to $10.27 per share. UHS also holds an average earnings surprise of 5.6%.
UHS 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.
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