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JAZZ or CORT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Drugs sector have probably already heard of Jazz Pharmaceuticals (JAZZ - Free Report) and Corcept Therapeutics (CORT - 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, both Jazz Pharmaceuticals and Corcept Therapeutics are holding a Zacks Rank of # 2 (Buy). 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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
JAZZ currently has a forward P/E ratio of 8.91, while CORT has a forward P/E of 32.13. We also note that JAZZ has a PEG ratio of 1.15. 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. CORT currently has a PEG ratio of 2.86.
Another notable valuation metric for JAZZ is its P/B ratio of 3.01. 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, CORT has a P/B of 6.86.
These metrics, and several others, help JAZZ earn a Value grade of A, while CORT has been given a Value grade of C.
Both JAZZ and CORT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JAZZ is the superior value option right now.
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JAZZ or CORT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Jazz Pharmaceuticals (JAZZ - Free Report) and Corcept Therapeutics (CORT - 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, both Jazz Pharmaceuticals and Corcept Therapeutics are holding a Zacks Rank of # 2 (Buy). 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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
JAZZ currently has a forward P/E ratio of 8.91, while CORT has a forward P/E of 32.13. We also note that JAZZ has a PEG ratio of 1.15. 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. CORT currently has a PEG ratio of 2.86.
Another notable valuation metric for JAZZ is its P/B ratio of 3.01. 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, CORT has a P/B of 6.86.
These metrics, and several others, help JAZZ earn a Value grade of A, while CORT has been given a Value grade of C.
Both JAZZ and CORT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JAZZ is the superior value option right now.