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AMN or GDRX: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical Services sector have probably already heard of AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
AMN Healthcare Services has a Zacks Rank of #2 (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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AMN currently has a forward P/E ratio of 16.95, while GDRX has a forward P/E of 136.63. We also note that AMN has a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GDRX currently has a PEG ratio of 4.10.
Another notable valuation metric for AMN is its P/B ratio of 4.81. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GDRX has a P/B of 22.54.
These metrics, and several others, help AMN earn a Value grade of B, while GDRX has been given a Value grade of D.
AMN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMN is likely the superior value option right now.
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AMN or GDRX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical Services sector have probably already heard of AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
AMN Healthcare Services has a Zacks Rank of #2 (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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AMN currently has a forward P/E ratio of 16.95, while GDRX has a forward P/E of 136.63. We also note that AMN has a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GDRX currently has a PEG ratio of 4.10.
Another notable valuation metric for AMN is its P/B ratio of 4.81. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GDRX has a P/B of 22.54.
These metrics, and several others, help AMN earn a Value grade of B, while GDRX has been given a Value grade of D.
AMN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMN is likely the superior value option right now.