Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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.
Catalyst Pharmaceuticals (CPRX) is a stock many investors are watching right now. CPRX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We also note that CPRX holds a PEG ratio of 0.78. 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. CPRX's industry currently sports an average PEG of 2.17. CPRX's PEG has been as high as 3.40 and as low as 0.63, with a median of 2.22, all within the past year.
Finally, investors will want to recognize that CPRX has a P/CF ratio of 11.67. 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 12.67. Over the past 52 weeks, CPRX's P/CF has been as high as 25.41 and as low as 11.20, with a median of 14.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Catalyst Pharmaceuticals is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPRX feels like a great value stock at the moment.
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Catalyst Pharmaceuticals, Inc. (CPRX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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