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Should Value Investors Buy ANI Pharmaceuticals (ANIP) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

ANI Pharmaceuticals (ANIP - Free Report) is a stock many investors are watching right now. ANIP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is ANIP's P/B ratio of 2.71. 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 4.64. Over the past year, ANIP's P/B has been as high as 3.30 and as low as 2.31, with a median of 2.88.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ANIP has a P/S ratio of 2.31. This compares to its industry's average P/S of 6.43.

Finally, investors should note that ANIP has a P/CF ratio of 13.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.40. Within the past 12 months, ANIP's P/CF has been as high as 20.92 and as low as 11.93, with a median of 13.84.

These are only a few of the key metrics included in ANI Pharmaceuticals's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANIP looks like an impressive value stock at the moment.


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