Is Tivity Health (TVTY) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Tivity Health (TVTY) is a stock many investors are watching right now. TVTY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.25, which compares to its industry's average of 36.02. Over the past year, TVTY's Forward P/E has been as high as 22.99 and as low as -6.80, with a median of 7.82.
Investors should also note that TVTY holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TVTY's PEG compares to its industry's average PEG of 2.37. Over the past 52 weeks, TVTY's PEG has been as high as 2.30 and as low as -0.68, with a median of 0.75.
These are just a handful of the figures considered in Tivity Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TVTY is an impressive value stock right now.
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