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Should Value Investors Buy ASPEN PHARMACR (APNHY) Stock?

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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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is ASPEN PHARMACR (APNHY - Free Report) . APNHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.50. This compares to its industry's average Forward P/E of 7.98. APNHY's Forward P/E has been as high as 13.39 and as low as 5.42, with a median of 6.64, all within the past year.

Investors should also note that APNHY holds a PEG ratio of 0.94. 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. APNHY's PEG compares to its industry's average PEG of 1.21. Over the last 12 months, APNHY's PEG has been as high as 1.40 and as low as 0.79, with a median of 0.96.

Investors should also recognize that APNHY has a P/B ratio of 0.88. Investors use the P/B ratio to look at a stock's market value versus 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 1.09. APNHY's P/B has been as high as 2.60 and as low as 0.76, with a median of 1.25, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that ASPEN PHARMACR is likely undervalued currently. And when considering the strength of its earnings outlook, APNHY sticks out at as one of the market's strongest value stocks.


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