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Should Value Investors Buy Vir Biotechnology (VIR) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Vir Biotechnology (VIR - Free Report) . VIR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that VIR has a P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.53. Within the past 52 weeks, VIR's P/B has been as high as 6.22 and as low as 1.19, with a median of 1.68.

Finally, our model also underscores that VIR has a P/CF ratio of 3.02. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.04. VIR's P/CF has been as high as 10.49 and as low as -57.58, with a median of 3.02, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Vir Biotechnology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIR feels like a great value stock at the moment.


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