Back to top

Image: Bigstock

Should Value Investors Buy ASPEN PHARMACR (APNHY) Stock?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 value investors might notice is ASPEN PHARMACR (APNHY - Free Report) . APNHY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors will also notice that APNHY has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APNHY's PEG compares to its industry's average PEG of 1.12. Over the past 52 weeks, APNHY's PEG has been as high as 1.11 and as low as 0.83, with a median of 0.94.

Another notable valuation metric for APNHY is its P/B ratio of 1.04. 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. APNHY's current P/B looks attractive when compared to its industry's average P/B of 1.32. Over the past year, APNHY's P/B has been as high as 1.04 and as low as 0.50, with a median of 0.84.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ASPEN PHARMACR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APNHY feels like a great value stock at the moment.


See More Zacks Research for These Tickers


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


Aspen Pharmacare (APNHY) - free report >>

Published in