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AMN vs. DOCS: Which Stock Is the Better Value Option?
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Investors with an interest in Medical Services stocks have likely encountered both AMN Healthcare Services (AMN - Free Report) and Doximity (DOCS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMN has an improving earnings outlook. But this is only part of the picture for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AMN currently has a forward P/E ratio of 10.07, while DOCS has a forward P/E of 37.09. We also note that AMN has a PEG ratio of 3.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DOCS currently has a PEG ratio of 10.01.
Another notable valuation metric for AMN is its P/B ratio of 4.88. 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. By comparison, DOCS has a P/B of 5.52.
Based on these metrics and many more, AMN holds a Value grade of A, while DOCS has a Value grade of D.
AMN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMN is likely the superior value option right now.
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AMN vs. DOCS: Which Stock Is the Better Value Option?
Investors with an interest in Medical Services stocks have likely encountered both AMN Healthcare Services (AMN - Free Report) and Doximity (DOCS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMN has an improving earnings outlook. But this is only part of the picture for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AMN currently has a forward P/E ratio of 10.07, while DOCS has a forward P/E of 37.09. We also note that AMN has a PEG ratio of 3.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DOCS currently has a PEG ratio of 10.01.
Another notable valuation metric for AMN is its P/B ratio of 4.88. 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. By comparison, DOCS has a P/B of 5.52.
Based on these metrics and many more, AMN holds a Value grade of A, while DOCS has a Value grade of D.
AMN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMN is likely the superior value option right now.