Investors interested in stocks from the Medical - Drugs sector have probably already heard of Assertio (ASRT - Free Report) and Collegium Pharmaceutical (COLL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Assertio has a Zacks Rank of #2 (Buy), while Collegium Pharmaceutical has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than COLL has recently. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ASRT currently has a forward P/E ratio of 5.81, while COLL has a forward P/E of 27.51. We also note that ASRT has a PEG ratio of 0.29. 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. COLL currently has a PEG ratio of 1.38.
Another notable valuation metric for ASRT is its P/B ratio of 1.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLL has a P/B of 7.36.
These are just a few of the metrics contributing to ASRT's Value grade of A and COLL's Value grade of F.
ASRT has seen stronger estimate revision activity and sports more attractive valuation metrics than COLL, so it seems like value investors will conclude that ASRT is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Assertio (ASRT - Free Report) and Collegium Pharmaceutical (COLL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Assertio has a Zacks Rank of #2 (Buy), while Collegium Pharmaceutical has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than COLL has recently. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ASRT currently has a forward P/E ratio of 5.81, while COLL has a forward P/E of 27.51. We also note that ASRT has a PEG ratio of 0.29. 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. COLL currently has a PEG ratio of 1.38.
Another notable valuation metric for ASRT is its P/B ratio of 1.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COLL has a P/B of 7.36.
These are just a few of the metrics contributing to ASRT's Value grade of A and COLL's Value grade of F.
ASRT has seen stronger estimate revision activity and sports more attractive valuation metrics than COLL, so it seems like value investors will conclude that ASRT is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on COLL - FREE
Get the latest research report on ASRT - FREE