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Is OSMOTICA PHARM (OSMT) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

OSMOTICA PHARM is a stock many investors are watching right now. OSMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that OSMT has a P/B ratio of 1.82. 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 stock's P/B looks solid versus its industry's average P/B of 3.31. OSMT's P/B has been as high as 1.82 and as low as 0.32, with a median of 0.68, over the past year.

Finally, investors will want to recognize that OSMT has a P/CF ratio of 3.64. 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. OSMT's current P/CF looks attractive when compared to its industry's average P/CF of 9.89. Over the past 52 weeks, OSMT's P/CF has been as high as 3.64 and as low as 0.05, with a median of 2.63.

These are only a few of the key metrics included in OSMOTICA PHARM'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, OSMT looks like an impressive value stock at the moment.

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