Are Investors Undervaluing These Medical Stocks Right Now?

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.

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 stock to keep an eye on is

Assertio (ASRT)

. ASRT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for ASRT is its P/B ratio of 1.05. 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 1.26. Over the past 12 months, ASRT’s P/B has been as high as 2.01 and as low as 0.40, with a median of 0.71.

Finally, investors should note that ASRT has a P/CF ratio of 3.92. 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. ASRT’s P/CF compares to its industry’s average P/CF of 6.41. Within the past 12 months, ASRT’s P/CF has been as high as 29.69 and as low as -76.48, with a median of -2.40.

Another great Medical – Drugs stock you could consider is

Collegium Pharmaceutical (COLL)

, which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of Collegium Pharmaceutical currently holds a Forward P/E ratio of 2.78, and its PEG ratio is 0.14. In comparison, its industry sports average P/E and PEG ratios of -702.93 and -34.14.

COLL’s price-to-earnings ratio has been as high as 14.17 and as low as 2.78, with a median of 8.82, while its PEG ratio has been as high as 0.71 and as low as 0.14, with a median of 0.57, all within the past year.

Collegium Pharmaceutical also has a P/B ratio of 2.93 compared to its industry’s price-to-book ratio of 1.26. Over the past year, its P/B ratio has been as high as 5.23, as low as 2.47, with a median of 3.11.

These are just a handful of the figures considered in Assertio and Collegium Pharmaceutical’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 ASRT and COLL is an impressive value stock right now.


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