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AMN vs. DOCS: 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 Doximity (DOCS - 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.
AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than DOCS has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 9.18, while DOCS has a forward P/E of 48.72. We also note that AMN has a PEG ratio of 2.85. 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. DOCS currently has a PEG ratio of 13.15.
Another notable valuation metric for AMN is its P/B ratio of 4.41. 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, DOCS has a P/B of 7.25.
Based on these metrics and many more, AMN holds a Value grade of A, while DOCS has 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. DOCS: 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 Doximity (DOCS - 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.
AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than DOCS has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 9.18, while DOCS has a forward P/E of 48.72. We also note that AMN has a PEG ratio of 2.85. 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. DOCS currently has a PEG ratio of 13.15.
Another notable valuation metric for AMN is its P/B ratio of 4.41. 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, DOCS has a P/B of 7.25.
Based on these metrics and many more, AMN holds a Value grade of A, while DOCS has 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.