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AMN vs. GDRX: Which Stock Should Value Investors Buy Now?
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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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #5 (Strong Sell). 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. But this is just one factor that value investors are interested in.
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 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 11.48, while GDRX has a forward P/E of 40.59. We also note that AMN has a PEG ratio of 0.71. 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 2.39.
Another notable valuation metric for AMN is its P/B ratio of 4.32. 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 8.60.
These are just a few of the metrics contributing to AMN's Value grade of B and GDRX's 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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AMN vs. GDRX: Which Stock Should Value Investors Buy Now?
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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #5 (Strong Sell). 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. But this is just one factor that value investors are interested in.
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 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 11.48, while GDRX has a forward P/E of 40.59. We also note that AMN has a PEG ratio of 0.71. 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 2.39.
Another notable valuation metric for AMN is its P/B ratio of 4.32. 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 8.60.
These are just a few of the metrics contributing to AMN's Value grade of B and GDRX's 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.