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ALKS or CSLLY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Alkermes (ALKS - Free Report) and CSL Limited Sponsored ADR (CSLLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Alkermes has a Zacks Rank of #1 (Strong Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). This means that ALKS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 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.
ALKS currently has a forward P/E ratio of 16.00, while CSLLY has a forward P/E of 24.13. We also note that ALKS has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSLLY currently has a PEG ratio of 1.93.
Another notable valuation metric for ALKS is its P/B ratio of 3.12. 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. For comparison, CSLLY has a P/B of 3.73.
Based on these metrics and many more, ALKS holds a Value grade of B, while CSLLY has a Value grade of C.
ALKS 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 ALKS is likely the superior value option right now.
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ALKS or CSLLY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Alkermes (ALKS - Free Report) and CSL Limited Sponsored ADR (CSLLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Alkermes has a Zacks Rank of #1 (Strong Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). This means that ALKS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 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.
ALKS currently has a forward P/E ratio of 16.00, while CSLLY has a forward P/E of 24.13. We also note that ALKS has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSLLY currently has a PEG ratio of 1.93.
Another notable valuation metric for ALKS is its P/B ratio of 3.12. 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. For comparison, CSLLY has a P/B of 3.73.
Based on these metrics and many more, ALKS holds a Value grade of B, while CSLLY has a Value grade of C.
ALKS 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 ALKS is likely the superior value option right now.