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AMN or GDRX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical Services stocks have likely encountered both AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
AMN Healthcare Services and GoodRx Holdings, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMN currently has a forward P/E ratio of 10.85, while GDRX has a forward P/E of 45.60. We also note that AMN has a PEG ratio of 0.67. 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. GDRX currently has a PEG ratio of 2.69.
Another notable valuation metric for AMN is its P/B ratio of 4.11. 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. By comparison, GDRX has a P/B of 9.29.
These metrics, and several others, help AMN earn a Value grade of B, while GDRX has been given a Value grade of D.
AMN stands above GDRX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMN is the superior value option right now.
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AMN or GDRX: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical Services stocks have likely encountered both AMN Healthcare Services (AMN - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
AMN Healthcare Services and GoodRx Holdings, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that AMN likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMN currently has a forward P/E ratio of 10.85, while GDRX has a forward P/E of 45.60. We also note that AMN has a PEG ratio of 0.67. 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. GDRX currently has a PEG ratio of 2.69.
Another notable valuation metric for AMN is its P/B ratio of 4.11. 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. By comparison, GDRX has a P/B of 9.29.
These metrics, and several others, help AMN earn a Value grade of B, while GDRX has been given a Value grade of D.
AMN stands above GDRX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMN is the superior value option right now.