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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Puma Biotechnology (PBYI). PBYI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
PBYI is also sporting a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PBYI's PEG compares to its industry's average PEG of 2.45. Over the past 52 weeks, PBYI's PEG has been as high as 1.79 and as low as 1.38, with a median of 1.51.
We should also highlight that PBYI has a P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus 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 3.01. Over the past 12 months, PBYI's P/B has been as high as 4.86 and as low as 1.47, with a median of 2.04.
Finally, investors will want to recognize that PBYI has a P/CF ratio of 3.53. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.71. PBYI's P/CF has been as high as 9.59 and as low as 3.24, with a median of 4.20, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Puma Biotechnology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBYI feels like a great value stock at the moment.
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Puma Biotechnology, Inc. (PBYI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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