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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Community Healthcare Trust (CHCT) is a stock many investors are watching right now. CHCT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.59, which compares to its industry's average of 16.22. Over the past 52 weeks, CHCT's Forward P/E has been as high as 11.21 and as low as 7.27, with a median of 9.88.
We also note that CHCT holds a PEG ratio of 1.07. 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. CHCT's industry currently sports an average PEG of 2.33. Over the past 52 weeks, CHCT's PEG has been as high as 1.40 and as low as 0.91, with a median of 1.06.
We should also highlight that CHCT has a P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.76. Over the past 12 months, CHCT's P/B has been as high as 1.55 and as low as 0.89, with a median of 1.35.
Finally, investors will want to recognize that CHCT has a P/CF ratio of 11.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CHCT's current P/CF looks attractive when compared to its industry's average P/CF of 17.08. CHCT's P/CF has been as high as 16.40 and as low as 9.45, with a median of 11.29, all within the past year.
These are only a few of the key metrics included in Community Healthcare Trust's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CHCT looks like an impressive value stock at the moment.