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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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 stock to keep an eye on is Exelixis (EXEL - Free Report) . EXEL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that EXEL has a P/B ratio of 2.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EXEL's current P/B looks attractive when compared to its industry's average P/B of 2.57. Over the past 12 months, EXEL's P/B has been as high as 3.28 and as low as 2.07, with a median of 2.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EXEL has a P/S ratio of 3.1. This compares to its industry's average P/S of 9.05.
If you're looking for another solid Medical - Biomedical and Genetics value stock, take a look at Vanda Pharmaceuticals (VNDA - Free Report) . VNDA is a # 2 (Buy) stock with a Value score of A.
Vanda Pharmaceuticals is currently trading with a Forward P/E ratio of 36.06 while its PEG ratio sits at 0.85. Both of the company's metrics compare favorably to its industry's average P/E of 65.02 and average PEG ratio of 4.35.
VNDA's price-to-earnings ratio has been as high as 71.28 and as low as 10.39, with a median of 22.02, while its PEG ratio has been as high as 0.88 and as low as 0.81, with a median of 0.85, all within the past year.
Furthermore, Vanda Pharmaceuticals holds a P/B ratio of 1.10 and its industry's price-to-book ratio is 2.57. VNDA's P/B has been as high as 2.39, as low as 1.05, with a median of 1.27 over the past 12 months.
These are only a few of the key metrics included in Exelixis and Vanda Pharmaceuticals strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EXEL and VNDA look like an impressive value stock at the moment.
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Should Value Investors Buy Exelixis (EXEL) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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 stock to keep an eye on is Exelixis (EXEL - Free Report) . EXEL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that EXEL has a P/B ratio of 2.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EXEL's current P/B looks attractive when compared to its industry's average P/B of 2.57. Over the past 12 months, EXEL's P/B has been as high as 3.28 and as low as 2.07, with a median of 2.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EXEL has a P/S ratio of 3.1. This compares to its industry's average P/S of 9.05.
If you're looking for another solid Medical - Biomedical and Genetics value stock, take a look at Vanda Pharmaceuticals (VNDA - Free Report) . VNDA is a # 2 (Buy) stock with a Value score of A.
Vanda Pharmaceuticals is currently trading with a Forward P/E ratio of 36.06 while its PEG ratio sits at 0.85. Both of the company's metrics compare favorably to its industry's average P/E of 65.02 and average PEG ratio of 4.35.
VNDA's price-to-earnings ratio has been as high as 71.28 and as low as 10.39, with a median of 22.02, while its PEG ratio has been as high as 0.88 and as low as 0.81, with a median of 0.85, all within the past year.
Furthermore, Vanda Pharmaceuticals holds a P/B ratio of 1.10 and its industry's price-to-book ratio is 2.57. VNDA's P/B has been as high as 2.39, as low as 1.05, with a median of 1.27 over the past 12 months.
These are only a few of the key metrics included in Exelixis and Vanda Pharmaceuticals strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EXEL and VNDA look like an impressive value stock at the moment.