Why Fresenius (FMS) is a Top Value Stock for the Long-Term

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Fresenius (FMS)

Based in Bad Homburg, Germany, Fresenius Medical Care AG & Co. KGaA is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure.

FMS sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Medical - Instruments industry's P/E of 27.3X, shares of Fresenius are trading at a forward P/E of 11.8X. FMS also has a PEG Ratio of 1, a Price/Cash Flow ratio of 5.1X, and a Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For FMS, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $2.11 per share for 2025. Per share FMS boasts an average earnings surprise of 15.7%.

FMS should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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