Investors interested in Medical Services stocks are likely familiar with AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMN currently has a forward P/E ratio of 11.60, while GDRX has a forward P/E of 35.31. We also note that AMN has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GDRX currently has a PEG ratio of 2.08.
Another notable valuation metric for AMN is its P/B ratio of 4.36. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 8.24.
Based on these metrics and many more, AMN holds a Value grade of B, while GDRX has a Value grade of D.
AMN stands above GDRX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMN is the superior value option right now.
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Investors interested in Medical Services stocks are likely familiar with AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMN currently has a forward P/E ratio of 11.60, while GDRX has a forward P/E of 35.31. We also note that AMN has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GDRX currently has a PEG ratio of 2.08.
Another notable valuation metric for AMN is its P/B ratio of 4.36. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 8.24.
Based on these metrics and many more, AMN holds a Value grade of B, while GDRX has a Value grade of D.
AMN stands above GDRX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMN is the superior value option right now.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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