CVS vs. DHR: Which Stock Is the Better Value Option?

Group 1 - The article discusses the potential investment opportunities in the Medical Services sector, specifically comparing CVS Health and Danaher to identify which stock may be undervalued [1] - CVS Health has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Danaher, which has a Zacks Rank of 3 (Hold) [3] - Value investors typically analyze various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - CVS Health has a forward P/E ratio of 11.23, significantly lower than Danaher's forward P/E of 25.34, suggesting CVS may be undervalued [5] - CVS has a PEG ratio of 0.98, while Danaher has a PEG ratio of 2.69, further indicating CVS's potential for better value [5] - CVS's P/B ratio is 1.11 compared to Danaher's 2.74, reinforcing the notion that CVS is a more attractive investment based on valuation metrics [6]