Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, July 25, 2011

Potential Takeover Candidate? (NYSE: CYH)

Shares of CYH fell by 3.78% or $-1.02/share to $25.98. Community Health Systems, Inc. is trading at a price to book ratio of 1.07. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 0.71 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.19. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 2230610 shares of CYH exchange hands on a given day and today's volume is recorded at 896312. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Community Health Systems, Inc. is an operator of hospitals in the United States.