Back to top

Image: Bigstock

AMN or PGNY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Medical Services sector might want to consider either AMN Healthcare Services (AMN - Free Report) or Progyny (PGNY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Both AMN Healthcare Services and Progyny have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

AMN currently has a forward P/E ratio of 9.63, while PGNY has a forward P/E of 309.64. We also note that AMN has a PEG ratio of 8.67. 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. PGNY currently has a PEG ratio of 14.70.

Another notable valuation metric for AMN is its P/B ratio of 4.28. 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, PGNY has a P/B of 9.48.

These are just a few of the metrics contributing to AMN's Value grade of A and PGNY's Value grade of D.

Both AMN and PGNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMN is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AMN Healthcare Services Inc (AMN) - free report >>

Progyny, Inc. (PGNY) - free report >>

Published in