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Is Collegium Pharmaceutical (COLL) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Collegium Pharmaceutical (COLL - Free Report) is a stock many investors are watching right now. COLL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

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 1.9. This compares to its industry's average P/S of 4.33.

Finally, our model also underscores that COLL has a P/CF ratio of 5.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. COLL's P/CF compares to its industry's average P/CF of 14.02. Over the past 52 weeks, COLL's P/CF has been as high as 7.17 and as low as 3.49, with a median of 5.10.

These are just a handful of the figures considered in Collegium Pharmaceutical'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 COLL is an impressive value stock right now.


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