Are Investors Undervaluing MEDIFAST (MED) 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.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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.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.One company value investors might notice is MEDIFAST (MED). MED is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.Investors should also recognize that MED has a P/B ratio of 1.09. 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. MED's current P/B looks attractive when compared to its industry's average P/B of 2.20. Within the past 52 weeks, MED's P/B has been as high as 4.26 and as low as 0.92, with a median of 1.35.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MED has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.92.Finally, our model also underscores that MED has a P/CF ratio of 5.33. 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. MED's current P/CF looks attractive when compared to its industry's average P/CF of 17.36. MED's P/CF has been as high as 6.84 and as low as 2.64, with a median of 4.87, all within the past year.Value investors will likely look at more than just these metrics, but the above data helps show that MEDIFAST is likely undervalued currently. And when considering the strength of its earnings outlook, MED sticks out at as one of the market's strongest value stocks.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MEDIFAST INC (MED): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks