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Should Value Investors Buy Regeneron (REGN) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Regeneron (REGN - Free Report) . REGN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We also note that REGN holds a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REGN's industry currently sports an average PEG of 2.64. REGN's PEG has been as high as 1.59 and as low as 0.54, with a median of 0.71, all within the past year.

Finally, we should also recognize that REGN has a P/CF ratio of 9.37. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.07. Over the past year, REGN's P/CF has been as high as 20.46 and as low as 9.37, with a median of 13.74.

Value investors will likely look at more than just these metrics, but the above data helps show that Regeneron is likely undervalued currently. And when considering the strength of its earnings outlook, REGN sticks out at as one of the market's strongest value stocks.


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