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Are Investors Undervaluing Alkermes (ALKS) 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.
Alkermes (ALKS - Free Report) is a stock many investors are watching right now. ALKS is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.85 right now. For comparison, its industry sports an average P/E of 39.66. Over the past 52 weeks, ALKS's Forward P/E has been as high as 19.69 and as low as 9.91, with a median of 15.69.
Investors should also note that ALKS holds a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALKS's PEG compares to its industry's average PEG of 2.82. ALKS's PEG has been as high as 1.60 and as low as 0.48, with a median of 1.26, all within the past year.
We should also highlight 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 stock's P/B looks attractive against its industry's average P/B of 3.57. Within the past 52 weeks, ALKS's P/B has been as high as 3.98 and as low as 2.66, with a median of 3.36.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALKS has a P/S ratio of 3.2. This compares to its industry's average P/S of 6.55.
These are only a few of the key metrics included in Alkermes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALKS looks like an impressive value stock at the moment.
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Are Investors Undervaluing Alkermes (ALKS) 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.
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.
Alkermes (ALKS - Free Report) is a stock many investors are watching right now. ALKS is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.85 right now. For comparison, its industry sports an average P/E of 39.66. Over the past 52 weeks, ALKS's Forward P/E has been as high as 19.69 and as low as 9.91, with a median of 15.69.
Investors should also note that ALKS holds a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALKS's PEG compares to its industry's average PEG of 2.82. ALKS's PEG has been as high as 1.60 and as low as 0.48, with a median of 1.26, all within the past year.
We should also highlight 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 stock's P/B looks attractive against its industry's average P/B of 3.57. Within the past 52 weeks, ALKS's P/B has been as high as 3.98 and as low as 2.66, with a median of 3.36.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALKS has a P/S ratio of 3.2. This compares to its industry's average P/S of 6.55.
These are only a few of the key metrics included in Alkermes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALKS looks like an impressive value stock at the moment.