Is Premier (PINC) an appropriate title for value investors now?

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<p class = "canvas-canvas canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The value investment is easily the most convenient. one of the most popular ways After all, who would not want to find shares that go unnoticed and are compelling purchases, or that offer tempting discounts over fair value?

One way to find these companies is to look at several key financial indicators and ratios, many of which play a crucial role in the value stock selection process. Let First PINC allows you to determine whether it is a good choice for value investors or whether investors who subscribe to this methodology should look elsewhere for the best choices:

Ratio P / E

The price / earnings ratio, or PE, for short, is a key parameter that value investors always consider as a value. This shows us how much investors are willing to pay for every dollar of profit for a given security and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the current PE ratio of the security with: a) the level of this ratio in the past; (b) how does it compare to the industry / industry average; and (c) how does it compare to the market as a whole?

In this regard, Premier has a 12-month PE ratio of 15.0, as you can see in the graph below: "data-reactid =" 11 "> Value investing is easily the # One of the most popular ways to find good stocks in all markets – after all, who would not want to find shares that go under the radar and that are compelling purchases, or that offer attractive discounts to the market. just value?

One way to find these companies is to look at several key financial indicators and ratios, many of which play a crucial role in the value stock selection process. Let First PINC allows you to determine whether it is a good choice for value investors or whether investors who subscribe to this methodology should look elsewhere for the best choices:

Ratio P / E

The price / earnings ratio, or PE, for short, is a key parameter that value investors always consider as a value. This shows us how much investors are willing to pay for every dollar of profit for a given security and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the current PE ratio of the security with: a) the level of this ratio in the past; (b) how does it compare to the industry / industry average; and (c) how does it compare to the market as a whole?

As you can see from the table below, Premier has a 12-month PE ratio:

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In fact, this level compares favorably with the market as a whole, with the S & P 500's PE around 17.8. If we focus on the long-term trend of private equity, the current level of prime makes Prime Prime below its average level of 23.9 over the last five years. In addition, the current level is well below the peaks of the stock, which suggests that it can act from a solid point of entry. "Data-reactid =" 28 ">

In fact, this level compares favorably with that of the market as a whole, with the S & P 500's PE around 17.8. If we focus on the long-term trend of private equity, the current level of prime makes Prime Prime below its average level of 23.9 over the last five years. In addition, the current level is well below the highs of the stock, which suggests that it can be a good entry point.

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In addition, the price / earnings ratio of the Fund compares favorably with the ratio of Zacks Medical's last twelve months' P / E ratio of 20.4. At the very least, this indicates that the stock is currently undervalued relative to its competitors. "Data-reactid =" 45 ">

In addition, the price / earnings ratio of the Fund compares favorably with the ratio of Zacks Medical's last twelve months' P / E ratio of 20.4. At the very least, this indicates that the stock is relatively undervalued currently, relative to its peers.

The story continues

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We should also note that Premier has a forward PE ratio (price relative to this year's earnings) of 13.1; so it's fair to say that a slightly more value-oriented path could be coming for Premier's stock also in the short term.

P / S ratio

Another key measure to note is the price / sales ratio. This approach compares the price of a given share to its total sales, where a lower reading is generally considered better. Some people appreciate this more than other value-based methods because it takes sales into account, which is much more difficult to handle with accounting tricks than profits.

At present, Premier has a P / S ratio of about 2.7. This is below the S & P 500 average, which is currently at 3. Furthermore, as can be seen in the graph below, this figure is well below the peaks recorded for this stock in recent years in particular. "Data-reactid =" 66 ">

We should also note that Premier has a forward PE ratio (price relative to this year's earnings) of 13.1; so it's fair to say that a slightly more value-oriented path could be coming for Premier's stock also in the short term.

P / S ratio

Another key measure to note is the price / sales ratio. This approach compares the price of a given share to its total sales, where a lower reading is generally considered better. Some people appreciate this more than other value-based methods because it takes sales into account, which is much more difficult to handle with accounting tricks than profits.

At present, Premier has a P / S ratio of about 2.7. This figure is below the average of the S & P 500, which is currently at 3. Moreover, as can be seen in the graph below, it is well below the peaks of this stock especially those last years.

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Large Value Outlook

In total, Premier currently has a value score of A, which ranks him among the top 20% of all such stocks. This makes Premier a solid choice for value investors, and some of his other key metrics also point to it.

For example, the ratio PEG for Premier is only 1.2, a level below the industry average of 1.7. The PEG ratio is a modified PE ratio that takes into account the earnings growth rate of the stock. In addition, its P / CF ratio (another excellent value indicator) is 10.8, which is above the industry average of 16.1. Clearly, PINC is a solid choice on the value front from many angles.

What about the global stock?

While Premier may be a good choice for value investors, there are many other factors to consider before investing in this name. In particular, it should be noted that the company has a growth score of B and a momentum score of D. This gives PINC a Zacks VGM score – or its overall fundamental score – of A. (Read more about Zacks style scores, click here. & gt; & gt;)

At the same time, recent estimates of the company's profits have been discouraging. The current quarter has seen two upward revisions over the last sixty days compared to five downward revisions, while the full year estimate has seen an upward revision and nine downward revisions. during the same period.

As a result, the consensus estimate for the current quarter has dropped 1.5% over the last two months, while that of the full year has decreased by 0.8%. You can see the trend of the consensus estimate and the recent evolution of stock prices in the chart below: "data-reactid =" 83 ">

Large Value Outlook

In total, Premier currently has a value score of A, which ranks him among the top 20% of all such stocks. This makes Premier a solid choice for value investors, and some of his other key metrics also point to it.

For example, the ratio PEG for Premier is only 1.2, a level below the industry average of 1.7. The PEG ratio is a modified PE ratio that takes into account the earnings growth rate of the stock. In addition, its P / CF ratio (another excellent value indicator) is 10.8, which is above the industry average of 16.1. Clearly, PINC is a solid choice on the value front from many angles.

What about the global stock?

While Premier may be a good choice for value investors, there are many other factors to consider before investing in this name. In particular, it should be noted that the company has a growth score of B and a momentum score of D. This gives PINC a Zacks VGM score – or its overall fundamental score – of A. (Read more about Zacks style scores, click here >>)

At the same time, recent estimates of the company's profits have been discouraging. The current quarter has seen two upward revisions over the last sixty days compared to five downward revisions, while the full year estimate has seen an upward revision and nine downward revisions. during the same period.

As a result, the consensus estimate for the current quarter has dropped 1.5% over the last two months, while that of the full year has decreased by 0.8%. You can see the trend of the consensus estimate and the recent price trend of the title in the table below:

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Premier, Inc. Awards and Consensus | Quote from Premier, Inc.

Due to these downtrends, the Zacks stock is ranked 3 (maintenance), which is why we are looking for a short-term online performance of the company.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Bottom line

Prime is an inspired choice for value investors, given the wealth of its statistics in this area. Although the title ranks Zacks 3, it ranks high in the industry (among the top 36% of over 250 Zack industries), which should boost investor confidence.

However, over the last two years, the industry at large has significantly underperformed the overall market, as you can see below: "data-reactid =" 103 ">Bottom line

Prime is an inspired choice for value investors, given the wealth of its statistics in this area. Although the title ranks Zacks 3, it ranks high in the industry (among the top 36% of over 250 Zack industries), which should boost investor confidence.

However, over the past two years, the broader industry has significantly underperformed the overall market, as you can see below:

Thus, value investors might want to wait for analysts' estimates and opinions to come forward under this name, but once that happens, this action could be a compelling choice.

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Premier, Inc. (PINC): Free Stock Analysis Report
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