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Are Investors Undervaluing Harmony Biosciences (HRMY) Right Now?
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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, 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 Harmony Biosciences (HRMY - Free Report) . HRMY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is HRMY's P/B ratio of 3.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.92. Over the past year, HRMY's P/B has been as high as 4.40 and as low as 2.40, with a median of 3.68.
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. HRMY has a P/S ratio of 2.69. This compares to its industry's average P/S of 6.8.
Finally, our model also underscores that HRMY has a P/CF ratio of 14.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.61. Within the past 12 months, HRMY's P/CF has been as high as 17.23 and as low as 6.83, with a median of 12.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Harmony Biosciences is likely undervalued currently. And when considering the strength of its earnings outlook, HRMY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Harmony Biosciences (HRMY) Right Now?
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, 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 Harmony Biosciences (HRMY - Free Report) . HRMY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is HRMY's P/B ratio of 3.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.92. Over the past year, HRMY's P/B has been as high as 4.40 and as low as 2.40, with a median of 3.68.
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. HRMY has a P/S ratio of 2.69. This compares to its industry's average P/S of 6.8.
Finally, our model also underscores that HRMY has a P/CF ratio of 14.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.61. Within the past 12 months, HRMY's P/CF has been as high as 17.23 and as low as 6.83, with a median of 12.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Harmony Biosciences is likely undervalued currently. And when considering the strength of its earnings outlook, HRMY sticks out at as one of the market's strongest value stocks.