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Should Value Investors Buy Collegium Pharmaceutical (COLL) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Collegium Pharmaceutical (COLL - Free Report) . COLL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. COLL has a P/S ratio of 2.04. This compares to its industry's average P/S of 4.24.
Finally, we should also recognize that COLL has a P/CF ratio of 5.67. 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. COLL's current P/CF looks attractive when compared to its industry's average P/CF of 14.27. COLL's P/CF has been as high as 7.17 and as low as 3.49, with a median of 5.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Collegium Pharmaceutical is likely undervalued currently. And when considering the strength of its earnings outlook, COLL sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Collegium Pharmaceutical (COLL) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Collegium Pharmaceutical (COLL - Free Report) . COLL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. COLL has a P/S ratio of 2.04. This compares to its industry's average P/S of 4.24.
Finally, we should also recognize that COLL has a P/CF ratio of 5.67. 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. COLL's current P/CF looks attractive when compared to its industry's average P/CF of 14.27. COLL's P/CF has been as high as 7.17 and as low as 3.49, with a median of 5.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Collegium Pharmaceutical is likely undervalued currently. And when considering the strength of its earnings outlook, COLL sticks out as one of the market's strongest value stocks.