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AMN vs. GDRX: Which Stock Is the Better Value Option?
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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 stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, AMN Healthcare Services is sporting a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one factor that value investors are interested in.
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.
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 11.69, while GDRX has a forward P/E of 39.64. We also note that AMN has a PEG ratio of 0.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GDRX currently has a PEG ratio of 2.34.
Another notable valuation metric for AMN is its P/B ratio of 4.43. 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 8.02.
These are just a few of the metrics contributing to AMN's Value grade of A and GDRX's Value grade of F.
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 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 stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, AMN Healthcare Services is sporting a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one factor that value investors are interested in.
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.
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 11.69, while GDRX has a forward P/E of 39.64. We also note that AMN has a PEG ratio of 0.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GDRX currently has a PEG ratio of 2.34.
Another notable valuation metric for AMN is its P/B ratio of 4.43. 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 8.02.
These are just a few of the metrics contributing to AMN's Value grade of A and GDRX's Value grade of F.
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.