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Are Investors Undervaluing Collegium Pharmaceutical (COLL) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Collegium Pharmaceutical (COLL - Free Report) . COLL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. COLL has a P/S ratio of 2.2. This compares to its industry's average P/S of 3.15.

Finally, investors will want to recognize that COLL has a P/CF ratio of 8. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.32. Over the past 52 weeks, COLL's P/CF has been as high as 8.06 and as low as 5.39, with a median of 6.54.

Another great Medical - Drugs stock you could consider is Inotiv (NOTV - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Inotiv has a P/B ratio of 0.84 while its industry's price-to-book ratio sits at 1.30. For NOTV, this valuation metric has been as high as 0.86, as low as 0.16, with a median of 0.41 over the past year.

These are only a few of the key metrics included in Collegium Pharmaceutical and Inotiv strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, COLL and NOTV look like an impressive value stock at the moment.


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Collegium Pharmaceutical, Inc. (COLL) - free report >>

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