While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 company value investors might notice is Puma Biotechnology (PBYI). PBYI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that PBYI holds a PEG ratio of 1.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PBYI's industry has an average PEG of 2.51 right now. Over the last 12 months, PBYI's PEG has been as high as 1.46 and as low as 1.38, with a median of 1.44.
Another valuation metric that we should highlight is PBYI's P/B ratio of 1.66. 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. This stock's P/B looks attractive against its industry's average P/B of 2.84. PBYI's P/B has been as high as 4.07 and as low as 1.40, with a median of 1.99, over the past year.
Finally, our model also underscores that PBYI has a P/CF ratio of 3.28. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.97. PBYI's P/CF has been as high as 9.59 and as low as 2.76, with a median of 4.15, all within the past year.
These are just a handful of the figures considered in Puma Biotechnology'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 PBYI is an impressive value stock right now.
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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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