Is Novartis (NVS) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One stock to keep an eye on is Novartis (NVS). NVS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.33. This compares to its industry's average Forward P/E of 17.89. Over the last 12 months, NVS's Forward P/E has been as high as 16.06 and as low as 12.50, with a median of 13.82.Investors should also recognize that NVS has a P/B ratio of 5.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 8.16. NVS's P/B has been as high as 5.90 and as low as 4.17, with a median of 5.28, over the past year.Finally, investors should note that NVS has a P/CF ratio of 9.36. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.54. Within the past 12 months, NVS's P/CF has been as high as 14.36 and as low as 8.28, with a median of 9.57.Another great Large Cap Pharmaceuticals stock you could consider is Pfizer (PFE), which is a # 2 (Buy) stock with a Value Score of A.Pfizer is currently trading with a Forward P/E ratio of 9.67 while its PEG ratio sits at 0.91. Both of the company's metrics compare favorably to its industry's average P/E of 17.89 and average PEG ratio of 1.40.Over the last 12 months, PFE's P/E has been as high as 19.41, as low as 8.63, with a median of 11.02, and its PEG ratio has been as high as 2.77, as low as 0.86, with a median of 1.09.Furthermore, Pfizer holds a P/B ratio of 1.81 and its industry's price-to-book ratio is 8.16. PFE's P/B has been as high as 2.02, as low as 1.52, with a median of 1.76 over the past 12 months.These figures are just a handful of the metrics value investors tend to look at, but they help show that Novartis and Pfizer are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NVS and PFE feels like a great value stock at the moment.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Novartis AG (NVS): Free Stock Analysis Report Pfizer Inc. (PFE): 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