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Is Collegium Pharmaceutical (COLL) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

One stock to keep an eye on is Collegium Pharmaceutical (COLL - Free Report) . COLL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 64.08 right now. For comparison, its industry sports an average P/E of 156.99. Over the past 52 weeks, COLL's Forward P/E has been as high as 21,314.60 and as low as -10,486.64, with a median of 99.50.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 2.72. This compares to its industry's average P/S of 5.88.

These are only a few of the key metrics included in Collegium Pharmaceutical'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, COLL looks like an impressive value stock at the moment.


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