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Are Investors Undervaluing Owens & Minor (OMI) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Owens & Minor (OMI). OMI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.54, which compares to its industry's average of 28.39. OMI's Forward P/E has been as high as 12.02 and as low as 3.82, with a median of 7.17, all within the past year.

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Investors should also note that OMI holds a PEG ratio of 2.21. 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. OMI's PEG compares to its industry's average PEG of 2.64. Over the last 12 months, OMI's PEG has been as high as 3.44 and as low as 0.91, with a median of 1.66.

Value investors will likely look at more than just these metrics, but the above data helps show that Owens & Minor is likely undervalued currently. And when considering the strength of its earnings outlook, OMI sticks out at as one of the market's strongest value stocks.


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