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Are Investors Undervaluing Eagle Pharmaceuticals (EGRX) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Eagle Pharmaceuticals (EGRX - Free Report) . EGRX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for EGRX is its P/B ratio of 1.74. 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. This company's current P/B looks solid when compared to its industry's average P/B of 4.53. Over the past 12 months, EGRX's P/B has been as high as 3.92 and as low as 1.40, with a median of 2.56.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGRX has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.8.
Another great Medical - Products stock you could consider is QuidelOrtho (QDEL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, QuidelOrtho holds a P/B ratio of 1.27 and its industry's price-to-book ratio is 4.53. QDEL's P/B has been as high as 4.45, as low as 0.93, with a median of 1.69 over the past 12 months.
These are only a few of the key metrics included in Eagle Pharmaceuticals and QuidelOrtho strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EGRX and QDEL look like an impressive value stock at the moment.
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Are Investors Undervaluing Eagle Pharmaceuticals (EGRX) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Eagle Pharmaceuticals (EGRX - Free Report) . EGRX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for EGRX is its P/B ratio of 1.74. 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. This company's current P/B looks solid when compared to its industry's average P/B of 4.53. Over the past 12 months, EGRX's P/B has been as high as 3.92 and as low as 1.40, with a median of 2.56.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGRX has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.8.
Another great Medical - Products stock you could consider is QuidelOrtho (QDEL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, QuidelOrtho holds a P/B ratio of 1.27 and its industry's price-to-book ratio is 4.53. QDEL's P/B has been as high as 4.45, as low as 0.93, with a median of 1.69 over the past 12 months.
These are only a few of the key metrics included in Eagle Pharmaceuticals and QuidelOrtho strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EGRX and QDEL look like an impressive value stock at the moment.