Back to top

Image: Bigstock

Is Alexion Pharmaceuticals (ALXN) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Alexion Pharmaceuticals (ALXN - Free Report) is a stock many investors are watching right now. ALXN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that ALXN has a P/B ratio of 1.94. The P/B ratio is used to compare a stock's market value with 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 3.80. Over the past year, ALXN's P/B has been as high as 3.16 and as low as 1.48, with a median of 2.29.

Finally, investors will want to recognize that ALXN has a P/CF ratio of 7.86. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.64. Over the past year, ALXN's P/CF has been as high as 37.78 and as low as 6.05, with a median of 13.14.

These are just a handful of the figures considered in Alexion Pharmaceuticals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALXN is an impressive value stock right now.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Alexion Pharmaceuticals, Inc. (ALXN) - free report >>

Published in