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Are Investors Undervaluing Ligand Pharmaceuticals (LGND) Right Now?
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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Ligand Pharmaceuticals (LGND - Free Report) is a stock many investors are watching right now. LGND is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that LGND has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LGND's current P/B looks attractive when compared to its industry's average P/B of 3.55. LGND's P/B has been as high as 3.34 and as low as 1.28, with a median of 1.98, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LGND has a P/S ratio of 4.38. This compares to its industry's average P/S of 8.04.
Another great Medical - Biomedical and Genetics stock you could consider is Vir Biotechnology (VIR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Vir Biotechnology is currently trading with a Forward P/E ratio of -14.57 while its PEG ratio sits at -5.79. Both of the company's metrics compare favorably to its industry's average P/E of 93.80 and average PEG ratio of 5.33.
Over the past year, VIR's P/E has been as high as 3,855.59, as low as -647.04, with a median of -10.77; its PEG ratio has been as high as 349.87, as low as -58.71, with a median of 2 during the same time period.
Vir Biotechnology also has a P/B ratio of 1.55 compared to its industry's price-to-book ratio of 3.55. Over the past year, its P/B ratio has been as high as 8.05, as low as 1.19, with a median of 1.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ligand Pharmaceuticals and Vir Biotechnology are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LGND and VIR feels like a great value stock at the moment.
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Are Investors Undervaluing Ligand Pharmaceuticals (LGND) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Ligand Pharmaceuticals (LGND - Free Report) is a stock many investors are watching right now. LGND is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that LGND has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. LGND's current P/B looks attractive when compared to its industry's average P/B of 3.55. LGND's P/B has been as high as 3.34 and as low as 1.28, with a median of 1.98, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LGND has a P/S ratio of 4.38. This compares to its industry's average P/S of 8.04.
Another great Medical - Biomedical and Genetics stock you could consider is Vir Biotechnology (VIR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Vir Biotechnology is currently trading with a Forward P/E ratio of -14.57 while its PEG ratio sits at -5.79. Both of the company's metrics compare favorably to its industry's average P/E of 93.80 and average PEG ratio of 5.33.
Over the past year, VIR's P/E has been as high as 3,855.59, as low as -647.04, with a median of -10.77; its PEG ratio has been as high as 349.87, as low as -58.71, with a median of 2 during the same time period.
Vir Biotechnology also has a P/B ratio of 1.55 compared to its industry's price-to-book ratio of 3.55. Over the past year, its P/B ratio has been as high as 8.05, as low as 1.19, with a median of 1.69.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ligand Pharmaceuticals and Vir Biotechnology are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LGND and VIR feels like a great value stock at the moment.