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Should Value Investors Buy Dynavax Technologies (DVAX) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Dynavax Technologies (DVAX - Free Report) . DVAX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 37.38, which compares to its industry's average of 77.27. Over the last 12 months, DVAX's Forward P/E has been as high as 58.85 and as low as 8.44, with a median of 16.91.

Finally, investors will want to recognize that DVAX has a P/CF ratio of 6.91. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.76. Over the past year, DVAX's P/CF has been as high as 25.68 and as low as -79.76, with a median of 10.41.

If you're looking for another solid Medical - Biomedical and Genetics value stock, take a look at Vanda Pharmaceuticals (VNDA - Free Report) . VNDA is a # 2 (Buy) stock with a Value score of A.

Shares of Vanda Pharmaceuticals are currently trading at a forward earnings multiple of 36.94 and a PEG ratio of 0.85 compared to its industry's P/E and PEG ratios of 77.27 and 4.45, respectively.


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