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AMN vs. GDRX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical Services sector might want to consider either AMN Healthcare Services (AMN - Free Report) or 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with 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. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
AMN currently has a forward P/E ratio of 15.70, while GDRX has a forward P/E of 125.58. We also note that AMN has a PEG ratio of 0.97. 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. GDRX currently has a PEG ratio of 3.77.
Another notable valuation metric for AMN is its P/B ratio of 4.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GDRX has a P/B of 20.72.
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 vs. GDRX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical Services sector might want to consider either AMN Healthcare Services (AMN - Free Report) or 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with 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. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
AMN currently has a forward P/E ratio of 15.70, while GDRX has a forward P/E of 125.58. We also note that AMN has a PEG ratio of 0.97. 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. GDRX currently has a PEG ratio of 3.77.
Another notable valuation metric for AMN is its P/B ratio of 4.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GDRX has a P/B of 20.72.
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.