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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Alkermes (ALKS - Free Report) . ALKS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.85. This compares to its industry's average Forward P/E of 39.01. ALKS's Forward P/E has been as high as 19.69 and as low as 9.91, with a median of 15.69, all within the past year.
ALKS is also sporting a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALKS's PEG compares to its industry's average PEG of 2.83. Over the past 52 weeks, ALKS's PEG has been as high as 1.60 and as low as 0.48, with a median of 1.26.
Investors should also recognize that ALKS has a P/B ratio of 2.82. 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 3.42. ALKS's P/B has been as high as 3.98 and as low as 2.66, with a median of 3.36, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ALKS has a P/S ratio of 3.4. This compares to its industry's average P/S of 6.84.
These are just a handful of the figures considered in Alkermes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALKS is an impressive value stock right now.
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Is Alkermes (ALKS) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Alkermes (ALKS - Free Report) . ALKS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.85. This compares to its industry's average Forward P/E of 39.01. ALKS's Forward P/E has been as high as 19.69 and as low as 9.91, with a median of 15.69, all within the past year.
ALKS is also sporting a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALKS's PEG compares to its industry's average PEG of 2.83. Over the past 52 weeks, ALKS's PEG has been as high as 1.60 and as low as 0.48, with a median of 1.26.
Investors should also recognize that ALKS has a P/B ratio of 2.82. 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 3.42. ALKS's P/B has been as high as 3.98 and as low as 2.66, with a median of 3.36, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ALKS has a P/S ratio of 3.4. This compares to its industry's average P/S of 6.84.
These are just a handful of the figures considered in Alkermes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALKS is an impressive value stock right now.