Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Pediatrix Medical Group (MD)
Headquartered in Sunrise, FL, Pediatrix Medical Group, Inc. changed its corporate name from Mednax, effective Jul 1, 2022, to improve brand awareness. It continues trading under its current ticker symbol, MD.
MD is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 11.8X for the current fiscal year compared to the Medical Services industry's P/E of 18.2X. Additionally, MD has a PEG Ratio of 2.2 and a Price/Cash Flow ratio of 9.7X. Value investors should also note MD's Price/Sales ratio of 0.7X.
Many value investors pay close attention to a company's earnings as well. For MD, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.28 per share for 2024. Per share MD boasts an average earnings surprise of 9.9%.
MD 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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Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report