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Are Investors Undervaluing Puma Biotechnology (PBYI) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Puma Biotechnology (PBYI - Free Report) is a stock many investors are watching right now. PBYI is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors will also notice that PBYI has a PEG ratio of 1.38. 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. PBYI's industry has an average PEG of 2.72 right now. Over the past 52 weeks, PBYI's PEG has been as high as 0.00 and as low as 0.00, with a median of 0.00.

We should also highlight that PBYI has a P/B ratio of 1.8. 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 stock's P/B looks attractive against its industry's average P/B of 3.11. Over the past year, PBYI's P/B has been as high as 4.07 and as low as 1.40, with a median of 1.84.

Finally, our model also underscores that PBYI has a P/CF ratio of 3.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.30. Over the past year, PBYI's P/CF has been as high as 9.59 and as low as 2.76, with a median of 3.91.

Value investors will likely look at more than just these metrics, but the above data helps show that Puma Biotechnology is likely undervalued currently. And when considering the strength of its earnings outlook, PBYI sticks out as one of the market's strongest value stocks.


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