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Is OSMOTICA PHARM (OSMT) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is OSMOTICA PHARM . OSMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is OSMT's P/B ratio of 2.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.70. Over the past 12 months, OSMT's P/B has been as high as 2.48 and as low as 0.32, with a median of 0.72.

Finally, investors should note that OSMT has a P/CF ratio of 4.73. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.38. Over the past year, OSMT's P/CF has been as high as 4.96 and as low as 0.05, with a median of 2.63.

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

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