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AGN vs. TLGT: Which Stock Should Value Investors Buy Now?
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Investors interested in Medical - Generic Drugs stocks are likely familiar with Allergan and Teligent (TLGT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Allergan and Teligent are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that AGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AGN currently has a forward P/E ratio of 10.94, while TLGT has a forward P/E of 270.67. We also note that AGN has a PEG ratio of 1.26. 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. TLGT currently has a PEG ratio of 18.04.
Another notable valuation metric for AGN is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TLGT has a P/B of 5.39.
These metrics, and several others, help AGN earn a Value grade of B, while TLGT has been given a Value grade of D.
AGN sticks out from TLGT in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGN is the better option right now.
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AGN vs. TLGT: Which Stock Should Value Investors Buy Now?
Investors interested in Medical - Generic Drugs stocks are likely familiar with Allergan and Teligent (TLGT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Allergan and Teligent are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that AGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AGN currently has a forward P/E ratio of 10.94, while TLGT has a forward P/E of 270.67. We also note that AGN has a PEG ratio of 1.26. 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. TLGT currently has a PEG ratio of 18.04.
Another notable valuation metric for AGN is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TLGT has a P/B of 5.39.
These metrics, and several others, help AGN earn a Value grade of B, while TLGT has been given a Value grade of D.
AGN sticks out from TLGT in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGN is the better option right now.